Curtis invests $700,000 in a city of Athens bond that pays 9.00 percent interest. Alternatively, Curtis could have invested the $700,000 in a bond recently issued by Initech, Incorporated that pays 11.00 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. How much implicit tax would Curtis pay on the city of Athens bond?

$14,000

Explanation:

Calculation for How much implicit tax would Curtis pay on the city of Athens bond

Using this formula

Implicit tax=(Amount invested*Initech Interest rate)- (Amount invested* Athens bond Interest rate)

Let plug in the formula

Implicit tax=(11%*$700,000)- (9%*$700,000)

Implicit tax=$77,000-$63,000

Implicit tax=$14,000

Therefore the implicit tax that Curtis would pay on the city of Athens bond will be $14,000

answer; i believe the correct answer is (75 years);

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;