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Below are the factors for the compound amount of $ 1 and compound value of annuity payments at the end of five years: When required,
Below are the factors for the compound amount of $ and compound value of annuity payments at the end of five years:
When required, round your answer to the nearest dollar.
a The taxable bond and reinvested earnings will accumulate at an aftertax rate of
The aftertax value of the taxable bond and reinvested earnings will be :
b The income from the Series EE bond will not be taxed each year.
The aftertax value of the Series EE bond will be $
c Because the gain on the land will be taxed as a longterm capital gain, the sales proceeds less
of the appreciation must
exceed $
d Therefore, the land must increase in value by at least $
X to yield a greater aftertax return than the investment in
either of the bonds.
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