Which of the following 20000 investments is more profitable, Financial Management

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Which of the following 20000 investments is more profitable

Which of the following $20,000 investments is more profitable for you? Investment A offers an annual return of 5.95% and the return is tax free. Investment B offers an annual return of 6.85% but the returns are taxed. You are in the 15% marginal tax bracket.

A. You will have more money after taxes with Investment A.

B. You will have more money after taxes with Investment B.

C. You will have the same amount of money after taxes with both investments.

D. You can’t compare the two investments because one is tax free and one is taxed.

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Financial Management: Which of the following 20000 investments is more profitable

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