You invest $10,000 in a mutual fund that will earn 4% per year. The proceeds will be accumulated tax-free as a lump sum and paid out at the end of year 10 at which time the gain on your investment will be taxable. If your effective income tax rate is 15% and inflation will average 2% per year over the next 10 years, how much will your $10,000 investment be worth in today's purchasing power after income tax and inflation are taken into account? Draw your before-tax and after-tax cash flow diagrams. It is 2018, you finally graduated UTC and you desire one day in the future to purchase a new Harley Davidson motorcycle which cost $35,000 in today's dollars. Due to competition from other brands, prices for new Harley Davidson motorcycles has historically increased only by the rate of inflation which is estimated to be 2% per year over the next 5 years. It is now 2023, five years has passed and you go to your local Harley Davidson shop to buy your motorcycle. Harley Davidson Inc. is offering to finance the purchase of your new motorcycle at 6% per year for 48 months with a down payment of $3, 500. Based on the 2023 expected cost in actual dollars, less your down payment, and plus 7.25% sales tax, what will be your monthly payments if you accept their financing offer