Suppose You Are an Investor Facing a Choice Between Three $\quad$

Multiple Choice

Suppose you are an investor facing a choice between three investments that are identical in every way except in terms of their rates of return and taxability.Which investment provides the highest after-tax return?
Investment A: $\quad$ interest rate 10 percent, tax rate 40 percent of interest income.
Investment B: $\quad$ interest rate 8 percent, tax rate 25 percent of interest income.
Investment C: $\quad$ interest rate 6.5 percent, tax rate 0 percent.
Investment D: $\quad$ interest rate 5 percent, tax rate 1 percent.

A) Investment A
B) Investment B
C) Investment C
D) Investment D