1. Below I list several Savings Vehicle types. Write out the after-tax accumulation formula for each SV type listed where the terms available for use in each formula are listed below and can be used more than once. Assume that tax rates are constant over time.
2. 
   
3. $I = After-tax amount of initial investment
4. R = before-tax rate of return per time period
   n = # of time periods
   t_ord = ordinary income tax rate (for interest income)
   t_d = dividend tax rate
   t_cg = capital gains tax rate
5. 
   

Investment option	After-Tax Accumulation Formula
Savings Vehicle I (Money market fund)
Savings Vehicle II (Single-premium deferred annuity)
Savings Vehicle III (Mutual fund)

Answer rating: 100% (QA)

ANSWER Savings Vehicle I Money market fund I 1 tord 1 Rn Savings Vehicle II Singlepremium deferred a... View the full answer