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To: Still Thinking; SeekAndFind

Not only do they vote they run for and hold office!!!!

The test is flawed though. It does not have the right answer to the first and, by implication, the second question.

1. Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After 5 years, how much do you think you would have in the account if you left the money to grow?

The correct answer is that after taxes the amount will be closer to less than you started with.


11 posted on 08/30/2014 10:22:24 AM PDT by Sequoyah101
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To: Sequoyah101

DING DING DING, we have a winner. But the question did not mention taxes so most people will not include that factor.


14 posted on 08/30/2014 10:24:51 AM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
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To: Sequoyah101

EDIT TO ADD, Maybe those who answered #1 incorrectly were thinking about taxes... but then a multiple choice answer does not give you the luxury of including that factor.

THAT is problem with multiple choice tests.


18 posted on 08/30/2014 10:26:24 AM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
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To: Sequoyah101
The correct answer it answer is that after taxes the amount will be closer to less than you started with.

Since with most people $100 is their maximum savings and they don't pay taxes the correct answer stands.

22 posted on 08/30/2014 10:38:27 AM PDT by Starstruck (If my reply offends, you probably don't understand sarcasm or criticism...or do.)
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To: Sequoyah101

LOL!!


31 posted on 08/30/2014 10:50:17 AM PDT by SgtHooper (Anyone who remembers the 60's, wasn't there!)
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To: Sequoyah101
The test is flawed though. It does not have the right answer to the first and, by implication, the second question.

However, the correct answers are still A and C.

If you live in a no-tax state, the top rate on interest income is 43.4% (39.6% plus the 3.8% tax levied by the ACA, which unconstitutionally originated in the Senate). So, without taxes, your $100 would grow to $110.40 in five years. But at the top federal rate, only to $105.77.

As for inflation, that's just a hidden tax, levied by mismanaging the currency, as opposed to directly via the tax code.

39 posted on 08/30/2014 10:58:59 AM PDT by cynwoody
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To: Sequoyah101

“1. Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After 5 years, how much do you think you would have in the account if you left the money to grow?

The correct answer is that after taxes the amount will be closer to less than you started with.”

Um, no. You fail. Even at 2%, a person would receive at least 1% after taxes.


51 posted on 08/30/2014 12:27:43 PM PDT by CodeToad (Romney is a raisin cookie looking for chocolate chip cookie votes.)
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To: Sequoyah101

Excellent point!


56 posted on 08/30/2014 3:01:58 PM PDT by Still Thinking (Freedom is NOT a loophole!)
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