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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Definitions:

Clinical Psychology

A branch of psychology that studies, assesses, and treats people with psychological disorders.

Personality Psychology

The branch of psychology that studies personality and its variation among individuals, focusing on psychological patterns, traits, and behaviors.

Psychiatry

A branch of medicine dealing with psychological disorders; practiced by physicians who sometimes provide medical (for example, drug) treatments as well as psychological therapy.

Psychological Perspectives

Various approaches and viewpoints in psychology for understanding human behavior and mental processes.