each tile shows an investors tax bracket along with the tax - free yield of a bond the investor purchased…

each tile shows an investors tax bracket along with the tax - free yield of a bond the investor purchased. use the formula to determine the taxable equivalent yield of each investment, and then order the investments from least to greatest return.\ntaxable equivalent yield = \\frac{tax - free yield}{100 - tax bracket}\ntax bracket: 24% tax - free yield: 5%\ntax bracket: 12% tax - free yield: 5%\ntax bracket: 22% tax - free yield: 3%\ntax bracket: 24% tax - free yield: 4%\ntax bracket: 35% tax - free yield: 3%

each tile shows an investors tax bracket along with the tax - free yield of a bond the investor purchased. use the formula to determine the taxable equivalent yield of each investment, and then order the investments from least to greatest return.\ntaxable equivalent yield = \\frac{tax - free yield}{100 - tax bracket}\ntax bracket: 24% tax - free yield: 5%\ntax bracket: 12% tax - free yield: 5%\ntax bracket: 22% tax - free yield: 3%\ntax bracket: 24% tax - free yield: 4%\ntax bracket: 35% tax - free yield: 3%

Answer

Explanation:

Step1: Calculate taxable - equivalent yield for first case

For tax - bracket = 24% and tax - free yield = 5%, using the formula taxable equivalent yield=$\frac{\text{tax - free yield}}{100-\text{tax bracket}}$, we have $\frac{5}{100 - 24}=\frac{5}{76}\approx0.0658 = 6.58%$

Step2: Calculate taxable - equivalent yield for second case

For tax - bracket = 12% and tax - free yield = 5%, $\frac{5}{100 - 12}=\frac{5}{88}\approx0.0568 = 5.68%$

Step3: Calculate taxable - equivalent yield for third case

For tax - bracket = 22% and tax - free yield = 3%, $\frac{3}{100 - 22}=\frac{3}{78}\approx0.0385 = 3.85%$

Step4: Calculate taxable - equivalent yield for fourth case

For tax - bracket = 24% and tax - free yield = 4%, $\frac{4}{100 - 24}=\frac{4}{76}\approx0.0526 = 5.26%$

Step5: Calculate taxable - equivalent yield for fifth case

For tax - bracket = 35% and tax - free yield = 3%, $\frac{3}{100 - 35}=\frac{3}{65}\approx0.0462 = 4.62%$

Step6: Order the yields

Comparing the values: $3.85%<4.62%<5.26%<5.68%<6.58%$

Answer:

tax bracket: 22% tax - free yield: 3% < tax bracket: 35% tax - free yield: 3% < tax bracket: 24% tax - free yield: 4% < tax bracket: 12% tax - free yield: 5% < tax bracket: 24% tax - free yield: 5%