Assume that 125,000 is invested in a TDA. What is the after-tax balance in the account after 15 years if the tax rate is 28% and the pre-tax return is 11%?
A) 598,074.
B) 430,613.
C) 392,138.
solution:B
The balance in the account after payment of taxes in 15 years uses the future value interest factor for a TDA (FVIF,TDA):
FVIFTDA = (1 + R)^N*(1 ? TN)
FV = 125,000[FVIF,TDA]
FV = 125,000[(1.11)^15*(1 ? 0.28)
FV = 430,613作者: pennyless 时间: 2014-6-27 13:04
