Compute the ending after-tax account value and tax drag

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Reference no: EM131448362

1-. You plan to make a series of annual investments as follows. How much money will you have in your investment fund at the end of year 5 if you earn 8 percent per annum?

Year 0 1 2 3 4 5

$6,000 $8,000 $9,000 $10,000 $11,000 $15,000

2- $1000 is invested for 20 years at a pretax return of 10%. Assume return is subject to a deferred capital gain tax of 30%. The cost basis is $800. Compute the ending after-tax account value and the tax drag (both dollar amount and %)

Reference no: EM131448362

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