Judy Is Considering Receiving Either $20,000 of Current Salary or $40,000

question 3

Multiple Choice

Judy is considering receiving either $20,000 of current salary or $40,000 of deferred compensation in 12 years.Her current tax rate is 33%,but she expects her tax rate to be 15% 12 years from now.Judy can invest any after-tax current salary at a 6% ATROR.If she receives the deferred compensation,her investment will accumulate to

• A)$26,800.
• B)$34,000.
• C)$36,000.
• D)$40,000.

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Definitions:

XOR Function

A logical operation that returns true only when an odd number of inputs are true, and false otherwise.

OR Gate

A basic digital logic gate that outputs true or high if at least one of its inputs is true or high.

Boolean Equation

A mathematical expression under Boolean algebra involving variables that have two possible values (true or false) and are combined with logical operations.

Logic Gates

Fundamental building blocks of digital circuits, operating as electronic devices that perform basic logical functions like AND, OR, and NOT, based on the binary inputs they receive.