Keith and Joe both work for Google. They both make $89,000 and they also each have $3300 a year in childcare expenses. Keith deposits $3300 a year into a dependent care flexible spending account while Joe does not. They both have a tax rate of 26%. How much does Keith save vs. Joe in a given year?

Keith and Joe both work for Google. They both make $89,000 and they also each have $3300 a year in childcare expenses. Keith deposits $3300 a year into a dependent care flexible spending account while Joe does not. They both have a tax rate of 26%. How much does Keith save vs. Joe in a given year?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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8. Keith and Joe both work for Google. They both make $89,000 and they also each have
$3300 a year in childcare expenses. Keith deposits $3300 a year into a dependent care
flexible spending account while Joe does not. They both have a tax rate of 26%. How much
does Keith save vs. Joe in a given year?

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