If Nicolai Earns an 8 Percent After-Tax Rate of Return

question 121

Multiple Choice

If Nicolai earns an 8 percent after-tax rate of return, $20,000 today would be worth how much to Nicolai in five years? Use future value of $1. (Round discount factor(s) to four decimal places.)

• A)$20,000
• B)$13,620
• C)$18,520
• D)$21,600
• E)None of the choices are correct.

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