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A business was worth $130,000 on July 1, 1996. It was worth $260,000 on July 1, 2007. The owner pays a income tax of 1.8% of the value of the business. Assuming a constant annual rate of increase in value, how much did the owner pay when she paid the income tax on July 1, 2001? $6,413 B $1,708 $3,207 $3,415 Back Next

A business was worth $130,000 on July 1, 1996. It was worth $260,000 on July 1, 2007. The owner pays a income tax of 1.8% of the value of the business. Assuming a constant annual rate of increase in value, how much did the owner pay when she paid the income tax on July 1, 2001? $6,413 B $1,708 $3,207 $3,415 Back Next

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A business was worth $ 130,000 on July 1 1996. It was worth \$26 on July 1.2007. The owner pays a income tax of 1.8% of the value of the businessAssuming a constant annual rate of increase in value, how much did the owner pay when she paid the income tax on July 12001?
A business was worth $130,000 on July 1, 1996. It was worth $260,000 on July 1, 2007. The owner pays a income tax of 1.8% of the value of the business. Assuming a constant annual rate of increase in value, how much did the owner pay when she paid the income tax on July 1, 2001? $6,413 B $1,708 $3,207 $3,415 Back Next
Transcribed Image Text:A business was worth $130,000 on July 1, 1996. It was worth $260,000 on July 1, 2007. The owner pays a income tax of 1.8% of the value of the business. Assuming a constant annual rate of increase in value, how much did the owner pay when she paid the income tax on July 1, 2001? $6,413 B $1,708 $3,207 $3,415 Back Next
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