Tyler Is Going to Invest $2,000 in a Money Market

Multiple Choice

Tyler is going to invest $2,000 in a money market mutual fund.He has narrowed his choices to a tax-free fund currently earning 2.8 percent and a taxable fund earning 4.1 percent.If Tyler is in the 28 percent marginal tax bracket,which of these funds would give him the highest after-tax yield?

A) The tax-free fund
B) The taxable fund
C) They would both give him the same yield.
D) Not enough information is given to answer the question.