QUESTION 7 If George Coffin does not spend any of the initial $5 million cash payment for five years, what would the future value of a balanced stock and mutual funds portfolio be if he were able to earn 8% per year. QUESTION & If he invested the money at 8%, he would have to pay 21% in federal income taxes plus 10% in state income taxes on his earnings. Would he be better off investing in Minnesota tax-free bonds earning 4% than investing in taxable securities earning 8 percent? Explain why.