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If Nicolai earns an 8% after-tax rate of return, $16,500 today would be worth how much...

If Nicolai earns an 8% after-tax rate of return, $16,500 today would be worth how much to Nicolai in 5 years? Future value of $1. (Round present and future value factor(s) to 5 decimal places.) Multiple Choice None of the choices are correct.

$15,279.

$11,238.

$16,500.

$17,820.

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Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$16500*(1.08)^5

=$16500*1.46933
=$24244(Approx).

Hence the correct option is :'None of the choices are correct.'.

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