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Pre tax means value befor tax
After tax means value after deduct tax..
But one of BPP mcq# 113..
i correctly calculate future value of 2 years..But dont understand what happend in tax calculation..pre tax value simply means value from which we currently not deduct the tax then why BPP divide (1-.3)
Plz explain it sir
For every $100 pre-tax, the amount after tax will be 100 x (1 – 0.03) = 70.
So for every 70 after tax, the amount before tax will be 100, or 70 / (1 – 0.3)
Well Really thanks for your continuous replies..
Sir i now how to calculate pre and post tax..
Point is Currently we are not workout to any tax situation..
So;
This is only a future Value(Pre tax value)=127050
Tax(30%)=38115
Post tax Value=88935So 127050 is only use as a post tax value…if we already payed tax on this value..but we are not..
Plz Help me where you find me wrong..
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