Suppose you decide to invest $10,000 of gross income (i.e., pre-tax) in the Bledsoe S&P 500 Index

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Suppose you decide to invest $10,000 of gross income (i.e., pre-tax) in the Bledsoe S&P 500 Index Fund and that the fund has an 11.04% annual return. Ignore any other taxes, fees, issues, employer match, etc. not mentioned below. a. Assuming annual compounding, how much money will you have in ten years?

Calculate the dollar amount assuming the initial investment is made with pre-tax dollars.

Also, Calculate the after-tax amount (assume a 35% tax rate on both principal and capital gains) in year ten?

Related Book For answer-question

Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Apr 18, 2023 11:25 PM

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Suppose you decide to invest $10,000 of gross income (i.e., pre-tax) in the Bledsoe S&P 500 Index

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a Assuming annual compounding the future value FV of the investment after 10 years can be calculated ... View the full answer

Corporate Finance

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