What is your approximate after-tax profit from the investment, rounded to $10?

You invest $100 000 for 3 years at a continuously compounded rate of 3%. At the end of 3 years, you redeem the investment. Taxes of 22% are applied at the time of redemption .

What is your approximate after-tax profit from the investment, rounded to $10?
A . $9420
B . $7350
C . $7230
D . $7100

View Answer

Answer: B