a) Amount after 5 years=13500*(1+10%)^5
=21741.89
Capital gain=21741.89-13500=8241.89
Capital gain tax=8241.99*15%=1236.28
Cash retained=21741.89-1236.28=20506
b)After tax return=[(final/initial)^(1/5)]-1
=[(20506/13500)^(1/5)]-1
=8.72%
c) Amount after 5 years=13500*(1+10%)^5
=21741.89
Capital gain=21741.89-13500=8241.89
Capital gain tax=8241.99*25%=2060.47
Cash retained=21741.89-2060.47=19681
d)After tax return=[(final/initial)^(1/5)]-1
=[(19681/13500)^(1/5)]-1
=7.83%
e) Amount after 5 years=13500*(1+10%)^15
=56392.85
Capital gain=56392.85-13500=42892.85
Capital gain tax=42892.85*15%=6433.93
Cash retained=56392.85-6433.93=49959
f)After tax return=[(final/initial)^(1/5)]-1
=[(49959/13500)^(1/15)]-1
=9.12%
Komiko Tanaka invests $13,500 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that...
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