An individual buys $11,000 of stock. The stock grows by 8 percent each year. Calculate the final value after taxes if the individual holds the stock for 3 years. Assume that only half of realized capital gains is taxable and that the tax rate is 40 percent.

The individual sells the stock at the end of the 3 years. What is the final value of the stock after taxes, rounded to the nearest dollar?

multiple choice

• $12,714

• $13,285

• $12,428

• $11,085

• $11,811