If Nicolai earns an 8% after-tax rate of return,$20,000 today would be worth how much to Nicolai in 5 years? Use Exhibit 3.1 in the text.(Round present and future value amounts to 3 places)

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To find the future value of $20,000 at an 8% annual rate over 5 years, use the future value formula: FV = PV * (1 + r)^n. Here, FV = $20,000 * (1 + 0.08)^5 = $20,000 * 1.46933 = $29,386.60. None of the given choices match this value.

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