1. Problem 2-02 eBook Problem 2-02 a. Someone in the 36 percent tax bracket can earn 9 percent annually on her investments in a tax-exempt IRA account. What will be the value of a one-time $15,000 investment in 5 years? 10 years? 20 years? You may use Appendix C to answer the questions. Do not round intermediate calculations. Round your answers to the nearest dollar. in 5 years: $ in 10 years: $ in 20 years: $ b. Suppose the preceding 9 percent return is taxable rather than tax-deferred and the taxes are paid annually. What will be the after-tax value of her $15,000 investment after 5, 10, and 20 years? Do not round intermediate calculations. Round your answers to the nearest dollar. in 5 years: $ in 10 years: $ in 20 years: $ TABLE C.3 APPENDIX C Future Value of $1 at the End of n Periods: Period 1% 2% 3% 4% 5% 6% 74 8% 9% 10% 12% 15% 16% 18% 20% 1 2 3 4 5 1.0100 1.0201 1.0303 1.0406 1.0510 1.0400 1.0816 1.1249 1.1699 1.2167 1.0600 1.1236 1.1910 1.2625 1.3382 1.0700 1.1449 1.2250 1.3108 1.4026 1.0800 1.1664 1.2597 1.3605 1.4693 1.1200 1.2544 1.4049 15735 1.7623 1.1400 1.2996 1.4815 1.6890 1.9254 1.1500 13225 1.5209 1.7490 2.0114 1.0500 1.1025 1.1576 1.2155 1.2763 1-3401 1.4071 1.4775 1.5513 1.6289 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 2.3674 6 7 8 9 10 1.0615 1,0721 1.0829 1.0937 1.1046 1.2000 1.4400 1.7280 2.0736 2.4883 2 9860 3.5832 4.2998 5.1598 6.1917 1.2653 1.3159 1.3686 1.4233 1.4802 14185 1.5036 1.5938 1.6895 1.7908 1.5007 1.6058 1.7182 1.8385 1.9672 1.9738 2 2107 2.4760 2.7731 3.1058 1.1000 1.2100 1 3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3:4523 3.7975 4.1772 2.1950 2.5023 2.8526 3.2519 3.7072 1.0200 10404 1.0612 1.0824 1.1041 1.1262 1.1487 1.1717 1.1951 1.2190 1.2434 1.2682 1.2936 13195 1.3459 1.3728 1.4002 1.4282 1.4568 1.4859 2.3131 2.6600 3.0590 3.5179 4.0456 1.0300 1.0609 1.0927 1.1255 1.1593 1.1941 1.2299 1.2668 1.3048 1.3439 1.3842 1 4258 1.4685 1.5126 1.5580 1.6047 1.6528 1.7024 1.7535 1.8061 1.1600 1.3456 1.5609 1.8106 2.1003 2.4364 2.8262 3.2784 3 8030 4.4114 5.1173 5.9360 6.8858 7.9875 9 2655 1.1800 1.3924 1.6430 19388 2.2878 2 6996 3.1855 3.7589 4.4355 5.2338 6.1759 7.2876 8.5994 10.147 11 973 11 12 13 14 15 1.1157 1.1268 1.1381 1.1495 1.1610 1.7103 1.7959 1.8856 1.9799 2.0789 1.5869 1.7138 1.8509 1.9990 2.1589 2.3316 2.5182 2.7196 2.9372 3.1722 3.4259 3.7000 3.9960 4.3157 4.6610 1.8983 2.0122 2.1329 2.2609 2.3966 2.1049 2.2522 2.4098 2.5785 2.7590 2.5804 2.8127 3.0658 3.3417 3.6425 1.5395 1.6010 1.6651 1.7317 1.8009 1.8730 1.9479 2.0258 2.1068 2.1911 3.4785 3.8960 4.3635 4.8871 5.4736 4.2262 48179 5.4924 6.2613 7.1379 8.1372 9.2765 10.575 12.055 13.743 4.6524 53502 6.1528 70757 8.1371 9 3576 10.761 12.375 14.231 16366 7.4301 8.9161 10.699 12.839 15.407 18.488 22.186 26.623 31.948 38.337 16 17 18 19 20 1.1726 1.1843 1.1961 1.2081 1.2202 2 1829 2.2920 2.4066 2.5270 2.6533 2.9522 3.1588 3.3799 3.6165 3.8697 3.9703 4.3276 4.7171 5.1417 5.6044 4.5950 5.0545 5.5599 6.1159 6.7275 6.1304 6.8660 7.6900 8.6128 9.6463 14.129 16,672 19.673 23.214 27.393 2.5404 2.6928 2.8543 3.0256 3.2071 3.3996 3.6035 3.8197 4.0489 4.2919 10.748 12.467 14.462 16.776 19.460 22.574 26.186 30.376 35 236 40.874 21 22 23 24 25 1.2324 1.2447 1.2572 1.2697 1.2824 1.5157 15460 1.5769 1.6084 1.6406 1.8603 1.9161 1.9736 2.0328 2.0938 2.2788 2.3699 2.4647 2.5633 2.6658 2.7860 2.9253 3.0715 3.2251 3.3864 6.1088 6.6586 7.2579 79111 8.6231 7.4002 8.1403 8.9543 9.8497 10.834 15.667 17861 20.361 23 212 26.461 18.821 21.644 24.891 28.625 32.918 32.323 38.142 45.007 53.108 62.668 46.005 55.206 66.247 79.496 95.396 4.1406 4.4304 4.7405 5.0724 5.4274 5.8074 6.2139 6.6488 7.1143 7.6123 5.0338 5.4365 5.8715 6.3412 6.8485 7.3964 7.9881 8.6271 9.3173 10.062 10.803 12.100 13.552 15.178 17.000 19.040 21.324 23.883 26.749 29.959 26 27 28 29 30 1.2953 308 1.3213 1.3345 1.3478 1.6734 1.7069 1.7410 1.7758 1.8114 2.1566 2.2213 2.2879 2.3566 2.4273 2.7725 2.8834 2.9987 3.1187 3.2434 3.5557 3.7335 3.9201 4.1161 4.3219 4.5494 4.8223 5.1117 5.4184 5.7435 9-3992 10.245 11 167 12.172 13.267 11.918 13.110 14.421 15.863 17.449 30.166 34.389 39.204 44.693 50.950 37.856 43.535 50.065 57.575 66.211 47.414 55.000 63.800 74.008 85.849 73.948 87.259 102.96 121.50 143.37 114.47 137.37 164.84 197.81 237.37