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

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

If Nicolai earns an 8 percent after-tax rate of return, $16,500 today would be worth how much to Nicolai in five years? Use future value of $1. (Round discount factor(s) to four decimal places.)

		$15,279.
		$11,238.
		$17,820.
		$16,500.
		None of the choices are correct.

business accounting

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Answer 1

Answer #1

Answer : None of the choices are correct

future value = Present value (1 + r)ⁿ

future value =16500 (1 + 0.08 )

future value =16500(1.08)⁵

future value =16500 (1.469)

future value =24239 (Approx)

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Answer 2

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