Patrick has successfully invested in a growing tech company. Three years ago he invested $10,000 in the company through a broker. Now he has decided to sell his stock. The value of his stock is now at $17,000. Here are the taxes and fees associated with his investment: Annual brokerage fee: $25 State tax: 5% of profit Federal tax: 25% of profit Inflation rate: 1% per year The state tax Patrick must pay on the initial profit is. The federal tax he must pay on the initial profit is. The inflation on the amount remaining after taxes is. As a result, the real value of Patrick's profit is.

Question

Mathematics

Ciara English

15 June, 20:04

Patrick has successfully invested in a growing tech company. Three years ago he invested $10,000 in the company through a broker. Now he has decided to sell his stock. The value of his stock is now at $17,000. Here are the taxes and fees associated with his investment: Annual brokerage fee: $25 State tax: 5% of profit Federal tax: 25% of profit Inflation rate: 1% per year The state tax Patrick must pay on the initial profit is. The federal tax he must pay on the initial profit is. The inflation on the amount remaining after taxes is. As a result, the real value of Patrick's profit is.

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Dalton Mccarthy · Answer 1

The state tax Patrick must pay on the initial profit is $350.

The federal tax he must pay on the initial profit is $1,750.

The inflation on the amount remaining after taxes is $147.

As a result, the real value of Patrick's profit is $4,678.

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