If Nicolai Earns an 8% After-Tax Rate of Return,$20,000 Today

question 109

Multiple Choice

If Nicolai earns an 8% after-tax rate of return,$20,000 today would be worth how much to Nicolai in 5 years? Use Future value of $1.(Round present and future value factor(s) to 5 decimal places.)  

• A)$20,000.
• B)$13,620.
• C)$18,520.
• D)$21,600.
• E)None of the choices are correct.

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Definitions:

Anterograde Amnesia

A condition characterized by the inability to form new memories following the onset of an injury or disease, while memories from before remain intact.

Cramming

A study technique involving intense memorization and learning in a short period, usually right before an examination.

Learning and Memory

The processes by which new information is encoded, stored, and retrieved, essential for adapting and responding to new experiences.

Ebbinghaus

Hermann Ebbinghaus was a German psychologist known for his pioneering work on memory, particularly the discovery of the forgetting curve, which describes the rate at which information is lost over time if there is no attempt to retain it.