If Joel earns a 10% after-tax rate of return, $10,000 received in two years is worth how much today? (round present and future value amounts to 3 places)
A) $10,000.
B) $9,090.
C) $8,260.
D) $11,000.
E) None of these.

Name: If Joel earns a 10% after-tax rate of return, $10,000 received in two years is worth how much today? (round present and future value amounts to 3 places) A) $10,000. B) $9,090. C) $8,260. D) $11,000. E) None of these.
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Question

Quizplus · Accepted Answer

$10,000 × .826 (Discount Factor, 2 years, 10%) = $8,260.

If Joel Earns a 10% After-Tax Rate of Return, $10,000