Kozloski has a current investment with a market value of €100,000 and cost basis of €80,000. The stock price grows at 7 percent per year for 20 years. Tax rate on capital gains is 20%.
1. Express the cost basis as a percent of the current market value.
2. What is Kozloski’s expected wealth after 20 years?
这道题第二问的答案FV = €100,000 × FVIF = €100,000 × [(1 + 0.07)20 (1 – 0.20) + 0.20(0.80)] = €325,575. 后面0.2*0.8为什么是加上，这不是税吗，不是应该减去吗？另外这道题为什么就默认是accrual tax不是defer或者wealth base呢
