Multiple Choice
You put money into an account and earn a real interest rate of 5 percent.Inflation is 2 percent,and your marginal tax rate is 35 percent.What is your after-tax real rate of interest?
A) 5.25 percent
B) 3.05 percent
C) 2.55 percent
D) 1.25 percent
Correct Answer:
Verified
Correct Answer:
Verified
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