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Posted on Sep 11, 2024

1) If Thomas has a 37 percent tax rate and a 11 percent after-tax rate of return, $72,500 of income in five years will cost

1) If Thomas has a 37 percent tax rate and a 11 percent after-tax rate of return, $72,500 of income in five years will cost him how much tax in today's dollars?

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If Nicolai earns an 9 percent after-tax rate of return, $6,500 today would be worth how much to Nicolai in five years? Use future value of $1. (Round discount factor(s) to four decimal places.)

EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return \begin{tabular}{|l|c|c|c|c|c|c|c|c|c|} \hline & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% \\ \hline Year 1 & .962 & .952 & .943 & .935 & .926 & .917 & .909 & .901 & .893 \\ \hline Year 2 & .925 & .907 & .890 & .873 & .857 & .842 & .826 & .812 & .797 \\ \hline Year 3 & .889 & .864 & .840 & .816 & .794 & .772 & .751 & .731 & .712 \\ \hline Year 4 & .855 & .823 & .792 & .763 & .735 & .708 & .683 & .659 & .636 \\ \hline Year 5 & .822 & .784 & .747 & .713 & .681 & .650 & .621 & .593 & .567 \\ \hline Year 6 & .790 & .746 & .705 & .666 & .630 & .596 & .564 & .535 & .507 \\ \hline Year 7 & .760 & .711 & .665 & .623 & .583 & .547 & .513 & .482 & .452 \\ \hline Year 8 & .731 & .677 & .627 & .582 & .540 & .502 & .467 & .434 & .404 \\ \hline Year 9 & .703 & .645 & .592 & .544 & .500 & .460 & .424 & .391 & .361 \\ \hline Year 10 & .676 & .614 & .558 & .508 & .463 & .422 & .386 & .352 & .322 \\ \hline Year 11 & .650 & .585 & .527 & .475 & .429 & .388 & .350 & .317 & .287 \\ \hline Year 12 & .625 & .557 & .497 & .444 & .397 & .356 & .319 & .286 & .257 \\ \hline Year 13 & .601 & .530 & .469 & .415 & .368 & .326 & .290 & .258 & .229 \\ \hline Year 14 & .577 & .505 & .442 & .388 & .340 & .299 & .263 & .232 & .205 \\ \hline Year 15 & .555 & .481 & .417 & .362 & .315 & .275 & .239 & .209 & .183 \\ \hline \end{tabular} EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return \begin{tabular}{|l|c|c|c|c|c|c|c|c|c|} \hline & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% \\ \hline Year 1 & .962 & .952 & .943 & .935 & .926 & .917 & .909 & .901 & .893 \\ \hline Year 2 & .925 & .907 & .890 & .873 & .857 & .842 & .826 & .812 & .797 \\ \hline Year 3 & .889 & .864 & .840 & .816 & .794 & .772 & .751 & .731 & .712 \\ \hline Year 4 & .855 & .823 & .792 & .763 & .735 & .708 & .683 & .659 & .636 \\ \hline Year 5 & .822 & .784 & .747 & .713 & .681 & .650 & .621 & .593 & .567 \\ \hline Year 6 & .790 & .746 & .705 & .666 & .630 & .596 & .564 & .535 & .507 \\ \hline Year 7 & .760 & .711 & .665 & .623 & .583 & .547 & .513 & .482 & .452 \\ \hline Year 8 & .731 & .677 & .627 & .582 & .540 & .502 & .467 & .434 & .404 \\ \hline Year 9 & .703 & .645 & .592 & .544 & .500 & .460 & .424 & .391 & .361 \\ \hline Year 10 & .676 & .614 & .558 & .508 & .463 & .422 & .386 & .352 & .322 \\ \hline Year 11 & .650 & .585 & .527 & .475 & .429 & .388 & .350 & .317 & .287 \\ \hline Year 12 & .625 & .557 & .497 & .444 & .397 & .356 & .319 & .286 & .257 \\ \hline Year 13 & .601 & .530 & .469 & .415 & .368 & .326 & .290 & .258 & .229 \\ \hline Year 14 & .577 & .505 & .442 & .388 & .340 & .299 & .263 & .232 & .205 \\ \hline Year 15 & .555 & .481 & .417 & .362 & .315 & .275 & .239 & .209 & .183 \\ \hline \end{tabular}