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Willa Is Considering Receiving Either $20,000 of Current Salary or $30,000

Question 64

Multiple Choice

Willa is considering receiving either $20,000 of current salary or $30,000 of deferred compensation in two years.Her current tax rate is 35%,but she expects her tax rate to be 25% two years from now.Willa can invest any after-tax current salary at a 6% ATROR.If she receives the current salary and invests the after-tax amount,her investment will accumulate to


A) $16,854.
B) $14,607.
C) $22,472.
D) None of the above.

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