Jim's (life expectancy is 20 years) decides to purchase a life insurance policy for $75,000 that promises a percent annual return. Jim decides to cash in the policy after five years while still living. Assuming Jim's marginal tax rate is 35 percent, what are his after-tax proceeds? (Round all interim calculations to the nearest whole number)

3. Jim (life expectancy is 20 years) decides to purchase a life insurance policy for a 2 percent annual return. Jim decides to cash in the policy after five years while still living. Assuming Jim's marginal tax rate is 35 percent, what are his after-tax proceeds? (Round all interim calculations to the nearest whole number) a. $14,139 b. $40,397 c. $101,258 1) 75x9%=67505yr=33,750 d. $115,397 2) 75x33750=41,250