Willa Is Considering Receiving Either $20,000 of Current Salary or $30,000

question 17

Multiple Choice

Willa is considering receiving either $20,000 of current salary or $30,000 of deferred compensation in two years.Her current tax rate is 35%,but she expects her tax rate to be 25% two years from now.Willa can invest any after-tax current salary at a 6% ATROR.If she receives the current salary and invests the after-tax amount,her investment will accumulate to

• A)$16,854.
• B)$14,607.
• C)$22,472.
• D)None of the above.

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Definitions:

Williamson Ether Synthesis

A method for preparing ethers by reacting an alkyl halide with an alcohol using a strong base.

4-propoxytoluene

An organic compound characterized by a toluene core structure with a propoxy group attached to the para position.

Major Organic Product

The primary substance produced in the highest quantity from an organic chemical reaction.

1-ethoxy-1-methylcyclopentane

A chemical compound that consists of a cyclopentane ring with an ethoxy (-OCH2CH3) and a methyl (CH3) group attached to the same carbon atom.