Solve the Problem $\begin{array} { l c } \text { Annual rate of return: } & 5 \% \\ \text { Number of years: } & 10 \end{array}$

question 232

Multiple Choice

Solve the problem.
-Find the final value, after all taxes are paid, for the following retirement account. Assume that taxes are not deferred and that deposits are made at the end of each year. $\begin{array} { l c } \text { Marginal tax rate: } & 28 \% \\ \text { Regular deferred contribution: } & \$ 2500 \\ \text { Annual rate of return: } & 5 \% \end{array}$
$\begin{array} { l c } \text { Annual rate of return: } & 5 \% \\ \text { Number of years: } & 10 \end{array}$

• A) \(\$ 21,214.36\)
• B) \(\$ 20,365.78\)
• C) \(\$ 23,547.94\)
• D) \(\$ 22,062.93\)

---

Definitions:

Cash Payments Journal

A financial accounting journal used to record all transactions that result in cash payments, including operating expenses, asset purchases, and debt repayments.

Employees' Salaries

Fixed payments made to employees for their services over a specific period, not immediately influenced by changes in business activity levels.

Accrued Salaries

This refers to wages that have been earned by employees but have not yet been paid by the company.

Revenue Journal

A specialized accounting journal used to record the sales of goods and services and revenue generated.