Question:

What is the ratio of tax free interest to taxed interest?

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Example: 6% tax free interest is the same as what % taxed interest if you are in the 28% federal tax bracket?

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  1. Approximately 8 1/3% would be the rate you would have to earn on a taxed investment to equal the 6% of non-taxed interest if you are in the 28% tax bracket.

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