Question

If Scott earns a 12% after-tax rate of return, $15,000 today would be worth how much to Scott in 2 years? (Round present and future value amounts to 3 places)

Answer 1

The future value of $15,000 after 2 years with a 12% after-tax rate of return is $18,816.

Step-by-step explanation:

To calculate the future value of $15,000 after 2 years with a 12% after-tax rate of return, we can use the formula:

Future Value = Present Value * (1 + Rate)^Time

Plugging in the values, we get:

Future Value = $15,000 * (1 + 0.12)^2

Futur Value = $15,000 * 1.2544

Future Value = $18,816