An Individual in the 36 Percent Tax Bracket Has $20,000

question 2

Multiple Choice

An individual in the 36 percent tax bracket has $20,000 invested in a tax-exempt account. If the individual earns 10 percent annually before taxes and inflation is 3.0 percent per year, what is the real value of the investment in 10 years?

• A) $31,000
• B) $33,200
• C) $38,614
• D) $39,343
• E) $47,823

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