Fran Smith has two investment opportunities. The interest rate for both investments is 8%. Interest on the first investment will compound annually while interest on the second will compound quarterly. Which investment opportunity should Fran choose? Why? Bill O'Brien would like to take his wife, Mary, on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $20,000 inheritance from an uncle and intends to invest it for the trip. Bill estimates the trip will cost $23,500 and he believes he can earn 5% interest, compounded annually, on his investment. Will he be able to pay for the trip with the accumulated investment amount? Refer to the situation described in BE 6-2. Assume that the trip will cost $26,600. What interest rate, com- pounded annually, must Bill earn to accumulate enough to pay for the trip? aste Income Concepts (LO. 4) Chelsea, who is single, purchases land for investment purposes in 2013 at a cost of $20,100. In 2018, she sells the land for $36,700. Chelsea's taxable income without considering the land sale is $104.900. what is the effect of the sale of the land on her taxable income, and what is her tax liability? Refer to the tax rate schedule for calculations. pboard Round all calculations to two decimal places. Assume a long- term capital gains tax rate of 15%. The effect of the sale of land is that it increases V her taxable income by the amount of the capital gain V . Her taxable income and her tax liability is 1S