Suppose the 8 percent investment of the previous problem is taxable rather than tax-deferred.What will be the after-tax value of his $10,000 investment after 5 years (assuming annual compounding)?
A) $10,680
B) $11,765
C) $13,895
D) $14,693
E) $15,528

Question

Quizplus · Accepted Answer

After-tax yreld
= Befare-tar yield (1-Tar rate)
$= 88 \% ( 1 - .15 ) = 6.8 \% / 6$ $10,000(1 + 0.068)? = $13,895

Suppose the 8 Percent Investment of the Previous Problem Is