If Nicolai earns an 8% after-tax rate of return, $20,000 today would be worth how much to Nicolai in 5 years?
A) $20,000
B) $13,620
C) $18,520
D) $21,600
E) None of these

Question

Quizplus · Accepted Answer

To find the future value of $20,000 at an 8% annual after-tax rate of return over 5 years, use the formula: Future Value = Present Value * (1 + rate)^number of years. So, $20,000 * (1 + 0.08)^5 = $20,000 * 1.46933 = $29,386.60. None of the given options match this value.

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