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a. Someone in the 15 percent tax bracket can earn 12 percent annually on his investments in a tax-exempt IRA account. What will be the

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a. Someone in the 15 percent tax bracket can earn 12 percent annually on his investments in a tax-exempt IRA account. What will be the value of a $10,000 investment in 5 years? 10 years? 20 years? You may use Appendix C to answer the questions. Do not round intermediate calculations. Round your answers to the nearest dollar. in 5 years: $ in 10 years: $ in 20 years: $ b. Suppose the preceding 12 percent return is taxable rather than tax-deferred and the taxes are paid annually. What will be the after-tax value of his $10,000 investment after 5,10 , and 20 years? Do not round intermediate calculations. Round your answers to the nearest dollar. in 5 years: $ in 10 years: $ in 20 years: \$ Someone in the 36 percent tax bracket can earn 7 percent annually on her investments in a tax-exempt IRA account. What will be the real value of a one-time $10,000 investment in 5 years? 10 years? 20 years? Assume that the rate of inflation during all these periods was 4 percent a year. You may use Appendix C to answer the questions. Do not round intermediate calculations. Round your answers to the nearest dollar. in 5 years: \$ in 10 years: $ in 20 years: \$ Someone in the 15 percent tax bracket can earn 15 percent annually on his investments in a tax-exempt IRA account. What will be the real value of a one-time $10,000 investment in 5 years? 10 years? 20 years? Assume that the rate of inflation during all these periods was 4 percent a year. You may use Appendix C to answer the questions. Do not round intermediate calculations. Round your answers to the nearest dollar. in 5 years: $ in 10 years: \$ in 20 years: $ You are given the following long-run annual rates of return for alternative investment instruments: The annual rate of inflation during this period was 2 percent, Compute the real rate of return on these investment aiternatives. Do not roune intermediate calculations. Round your answers to two decimal places

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