If Nicolai earns an 8% after-tax rate of return,$20,000 today would be worth how much to Nicolai in 5 years? Use Future value of $1.(Round present and future value factor(s)to 5 decimal places.)

Question

Quizplus · Accepted Answer

The future value of $20,000 at an 8% rate of return over 5 years is calculated using the formula FV = PV * (1 + r)^n. Here, FV = $20,000 * (1 + 0.08)^5 = $20,000 * 1.46933 = $29,386.60, which is not listed among the choices.

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