If Julius Has a 20% Tax Rate and a 10

question 17

Multiple Choice

If Julius has a 20% tax rate and a 10% after-tax rate of return, $25,000 of income in three years will cost him how much tax in today's dollars? (round present and future value amounts to 3 places)

• A) $3,755.
• B) $18,775.
• C) $5,000.
• D) $25,000.
• E) None of these.

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Definitions:

Legislature

The governmental body empowered to make, amend, or repeal laws within a state or country.

Synthesize

To combine various elements or aspects from different sources to form a coherent whole or create something new.

Summarize

The act of presenting a concise statement or overview of the main points of a text, document, or discourse.

Explain

To make something clear or easy to understand by describing or giving information about it.