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Alan inherited $100,000 with the stipulation that he invest it to financially benefit his family. Alan and Alice decided they would invest the inheritance to

Alan inherited $100,000 with the stipulation that he invest it to financially benefit his family. Alan and Alice decided they would invest the inheritance to help them accomplish two financial goals: purchasing a Park City vacation home and saving for their son, Coopers, education.

Vacation Home Coopers Education
Initial investment $ 50,000 $ 50,000
Investment horizon 5 years 18 years

Alan and Alice have a marginal income tax rate of 30 percent (capital gains rate of 15 percent) and have decided to investigate the following investment opportunities.

Complete the two annual after-tax rates of return columns for each investment. (Round your answers to 3 decimal places.)

Please show work as to how to figure out the Growth Stock.

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