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Author Question: The general form of the annualized after-tax rate of return (annualized ATROR) for the Deferred ... (Read 120 times)

kellyjaisingh

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Question 1

The formula for the after-tax accumulation (ATA) for the Exempt Model is
◦ ATA = AT$ (1 - t)n.
◦ ATA = AT$ (1 + t)n.
◦ ATA = AT$ (1 + R)n.
◦ ATA = AT$ (1 - R)n.

Question 2

The general form of the annualized after-tax rate of return (annualized ATROR) for the Deferred Model can be expressed as
◦ rann = [(1 + R)n(1 - tn) + tn]1/n - 1.
◦ rann = [(1 - R)n(1 - t) + t]1/n - 1.
◦ rann = [(1 + R)n(1 + t) + t]1/n - 1.
◦ rann = [(1 + R)n(1 + t) - t]1/n - 1.


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Marked as best answer by kellyjaisingh on Sep 13, 2020

peter

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kellyjaisingh

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Reply 2 on: Sep 13, 2020
YES! Correct, THANKS for helping me on my review


apple

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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