Assignment:
A taxpayer can invest $1,000 in a money market fund that yields an annual pretax rate of return of 8%, or buy an acre of land for $1,000 that appreciates at a 7% annual rate. The taxpayer plans to sell the land after 20 years and faces a 25% tax rate each year.
a. What is the after-tax accumulation at the end of 20 years from each investment?
b. What is the annualized after-tax rate of return from each investment?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.