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Next, subtract the decimal equivalent rate from an individual.00. Multiply this sum by the decimal equivalent generate. Using the same example, for a pre-tax yield of.044 even a rate of a.25 (25%), your equation is (1.00 transfer pricing room ).25) x.044 =.033, for an after tax yield of three.30%. This is determined by multiplying the after tax yield by 100, in order to express it for a percentage. Defer or postpone paying taxes.
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