The General Form of the Annualized After-Tax Rate of Return

question 70

Multiple Choice

The general form of the annualized after-tax rate of return (annualized ATROR) for the Deferred Model can be expressed as

• A)r_ann = [(1 + R)ⁿ(1 - t_n)+ t_n]^1/n - 1.
• B)r_ann = [(1 - R)ⁿ(1 - t)+ t]^1/n - 1.
• C)r_ann = [(1 + R)ⁿ(1 + t)+ t]^1/n - 1.
• D)r_ann = [(1 + R)ⁿ(1 + t)- t]^1/n - 1.

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