8-12. Your older brother is concerned more about investment safety than about investment performance.

For example, he has invested $200,000 in safe 10-year corporate AAA bonds yielding an average of 5% per year, payable each year. His effective income tax rate is 30%, and inflation will average 3% per year. How much will his $200,000 be worth in 8 years in today’s purchasing power after income taxes and inflation are taken into account? (8.2)