An investment earns 15% returns in the first year. Assuming tax rates of 25%. Now assume that the above investment earns 20% returns in the second year. Suppose instead of pay-as-you-go, taxes were paid at 25% only at the end of the second year. Then what would be your average annual after-tax return?

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Lets work this out step by step Start with an initial investment of 100 fo... View the full answer