If Julius Has a 20% Tax Rate and a 10

question 110

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 (rounded) ?

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

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Definitions:

Hydrogen Bonds

A type of weak chemical bond that occurs when a hydrogen atom bonded to a highly electronegative atom, such as oxygen or nitrogen, experiences an attraction to another electronegative atom.

Cytosine

A pyrimidine base found in DNA and RNA that pairs with guanine.

Guanine

One of the four main nucleobases found in DNA and RNA, it pairs with cytosine during DNA replication.

Hydrogen Bonds

Weak bonds formed between a hydrogen atom and a more electronegative atom, important in the structure of DNA and proteins.