An individual buys $11,000 of stock. The stock grows by 6 percent each year. Calculate the final value after taxes if the individual holds the stock for 2 years. Assume that only half of realized capital gains is taxable and that the tax rate is 40 percent. The individual sells the stock at the end of the 2 years. What is the final value of the stock after taxes, rounded to the nearest dollar? $12,088 O $1,400 O $9,888 O $1,816 O $11,680

An individual buys $11,000 of stock. The stock grows by 6 percent each year. Calculate the final value after taxes if the individual holds the stock for 2 years. Assume that only half of realized capital gains is taxable and that the tax rate is 40 percent. The individual sells the stock at the end of the 2 years. What is the final value of the stock after taxes, rounded to the nearest dollar? $12,088 O $1,400 O $9,888 O $1,816 O $11,680

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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