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Alan inherited $101,200 with the stipulation that he invest it to financially benefit his family. Alan and his wife Alice decided they would invest the

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Alan inherited $101,200 with the stipulation that he "invest it to financially benefit his family. Alan and his wife 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 Cooper's education. Cooper's Education Initial investment Investment horizon Vacation Home S50,600 5 years 550.600 18 years Alan and Alice have a marginal income tax rate of 32 percent (capital gains rate of 15 percent) and have decided to investigate the following investment opportunities Complete the two annual after-tax rate of return columns for each investment (Do not round intermediate calculations. Round your final answers to 2 decimal places.) 5 Years Annual After Tax Rate of Return 18 Years Annual After Tax Rate of Return Corporate bonds (ordinary interest taxed annually) 4.75 Dividend paying sochino appreciation and dividends are taxed at 15%) 350 Growth stock Future value is SG DOO Future value is $170,000 Municipal bond fax-exempt) 3.20 $ 3.10

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