Abstract
For simplicity, the taxation of interest income is usually ignored in elementary compound interest problems discussed in the mathematics of finance textbooks. The inclusion of tax considerations gives results that are more directly useful in practice. The after‐tax yield or rate of return is computed for a principal growing at compound interest over a fixed period based on two common taxation rules. The analysis focuses on single relationships between the rate of return and each of the associated variables taken in turn.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: International Journal of Mathematical Education in Science and Technology
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.