Rachel Invests $5,000 in a Money Market Account Which Earns

question 105

Essay

Rachel invests $5,000 in a money market account which earns a 5% before- tax return. Rachel has a 20% marginal tax rate. Rachel makes the one- time investment and leaves the funds in the account for 10 years. She allows all after- tax earnings to remain in the account. What is her after- tax accumulation after 10 years?

---

Definitions:

Consumer Transactions

Deals or agreements involving the purchase of goods or services by an individual for personal, family, or household use.

Conflict Approaches

A perspective within sociology that focuses on the social, political, or material inequalities of a social group, analyzing the conflict between competing interests.

Functionalist

A perspective in sociology that sees society as a complex system whose parts work together to promote solidarity and stability.

Crime

An action or omission that constitutes an offense punishable by law.