Multiple Choice
Suppose one year ago the price index was 120 and Maria purchased $20,000 worth of bonds.One year later the price index is 126.Maria redeems her bonds for $22,700 and is in a 40 percent tax bracket.What is Maria's real after-tax rate of interest to the nearest tenth of a percent?
A) 5.1 percent
B) 3.1 percent
C) 2.1 percent
D) 2.4 percent
Correct Answer:
Verified
Correct Answer:
Verified
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