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Mahmed wants to have $10,000 in his mega-vacation account at the end of 4 years. His taxable account will earn an average return of 6%
Mahmed wants to have $10,000 in his "mega-vacation" account at the end of 4 years. His taxable account will earn an average return of 6% compounded annually. Mahmed is in the 15% tax bracket. How much does he need to invest today to reach his goal? (Beginning of period).
| A. $8,000-$8,500 | |
| B. $4,000-$4,500 | |
| C. $6,000-$6,500 | |
| D. $7,500-$8,000 |
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