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You want to save $2000 today for retirement in 40 years. You have to choose between two plans: Option 1 Pay no taxes today, put
You want to save $2000 today for retirement in 40 years. You have to choose between two plans: Option 1 Pay no taxes today, put the money in an interest-yielding account, and pay taxes equal to 25% of the total amount withdrawn at retirement. Option 2 Pay taxes equivalent to 20% of the investment amount today, put the remainder in an interest-yielding account and pay no taxes when you withdraw your funds at retirement. a. What is the expected present
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