Answer:
$699,200
Explanation:
According to the scenario, computation of the given data are as follows,
After tax income = $15,200,000
Amount in account = 0.5% Ă— $15,200,000 = $76,000
Time period = 7 years
inflation = 5%
Interest rate = 9%
So, Total amount after 7 years = $76,000 Ă— (F/A, 9%, 7)
= $76,000 Ă—[ [tex]((1+.09)^{7}-1 )[/tex] Ă· .09]
= $76,000 Ă— [.82803912082 Ă· .09]
= $76,000 Ă— 9.2
= $699,200