How much will be worth in given years in purchasing power

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Question: 1. Your older brother is concerned more about investment safety than about investment performance. For example, he has invested $100,000 in safe 10-year corporate AAA bonds yielding an average of 6% per year, payable each year. His effective income tax rate is 33%, and inflation will average 3% per year. How much will his $100,000 be worth in 10 years in today's purchasing power after income taxes and inflation are taken into account?

2. Repeat the analysis for a reduced study period of five years.

Reference no: EM131506641

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