Margaret is trying to decide whether or not to place funds

Reference no: EM13612739

Margaret is trying to decide whether or not to place funds in a qualified tuition program. Her son will be attending college in four years. She is in the 35% marginal tax bracket and she believes she can earn 7% before tax return on alternative investments. Thus, $10,000 will accumulate to $11,948 (after-tax) in four years. Margaret expects tuition to increase at the rate of 5% each year to $12,155 in four years. Her son will be in the 15% marginal tax bracket in all relevant years. Given these assumptions, should Margaret participate in the qualified tuition program?

Reference no: EM13612739

Questions Cloud

A sound waves in air at 20 c has frequency of 150 hz and a : a sound waves in air at 20 c has frequency of 150 hz and a displacement amplitude of 5.00 x 10-3 mm. for his sound wave

Joe is 50 years old unmarried without children and has : joe is 50 years old unmarried without children and has earnings during 2011 of 8000. he is not claimed as a dependent

Tom a calendar year taxpayer filed his 2006 federal income : tom a calendar year taxpayer filed his 2006 federal income tax return on april 1 2007. in 2011 the irs audits this

What angle between the directions of this two displacements : so im really confused about this problem im not exactly sure where or how to start it can someone please help? consider

Margaret is trying to decide whether or not to place funds : margaret is trying to decide whether or not to place funds in a qualified tuition program. her son will be attending

You buy 10 at-the-money call options with expiration in 91 : you buy 10 at-the-money call options with expiration in 91 days for a stock with continous dividends of 2 volatility of

Individuals who receive substantial social security : individuals who receive substantial social security benefits are usually not eligible for the tax credit for the

Find the capacitance of the cylindrical capacitor in terms : a cylindrical capacitor consists of a cylinder of length l and radius a with a total charge q nested inside a thin

You have been called in as a consultant to help the : you have been called in as a consultant to help the hospital administration determine the best method of applying the

User Account

All Pages