Chapter 13.3, Problem 114E

Investment The value of an investment of $1000 earning 6% compounded annually is

$V\left(I,R\right)=1000{\lceil \frac{1+0.06\left(1-R\right)}{1+I}\rceil }^{10}$

where I is the annual rate of inflation and R is the tax rate for the person making the investment. Calculate $V_t\left(0.03,0.28\right)$ and $V_R\left(0.03,0.28\right)$. Determine whether the tax rate or the rate of inflation is the greater "negative” factor in the growth of the investment