Ask Question
31 January, 08:46

An investment's time horizon affects the after-tax rate of return on investments taxed annually. true or false

+3
Answers (1)
  1. 31 January, 10:00
    0
    True. Because of the time value of money taxes paid in the future have a reduced economic burden on the tax payer. Since most investments are taxed only when you cash out, the longer the investment's time horizon, the greater the after-tax rate of return.
Know the Answer?