If Scott earns a 12% after-tax rate of return,$15,000 today would be worth how much to Scott in 2 years? Use Exhibit 3.1 in the text.(Round present and future value amounts to 3 places)

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Using Exhibit 3.1, we can find that the after-tax rate of return of 12% corresponds to a factor of 1.2544 for two years. Therefore, the future value of $15,000 would be $18,816 (15,000 x 1.2544) to Scott in two years. Round to three decimal places gives us $18,816.

If Scott Earns a 12% After-Tax Rate of Return,$15,000 Today