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What is the real rate of interest you receive after tax

Question 1: If you invest in CDs earning an interest rate of 9%, the interest is taxable in the 28% bracket, and inflation is 5%, what is the real rate of interest you receive after tax?

Question 2: If you invest in CDs earning an interest rate of 4%, the interest is taxable in the 28% bracket, and inflation is 3%, what is the real rate of interest you receive after tax?

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Finance Basics: What is the real rate of interest you receive after tax

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Question 1: If you invest in CDs earning an interest rate of 9%, the interest is taxable in the 28% bracket, and inflation is 5%, what is the real rate of interest you receive after tax?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the real rate of interest you receive after tax

Reference No:- TGS01451312

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Investment bank the firm uses to issue stock

Q : Straight-line depreciation and financial statements

Q : What is the annualized return an investor

Q : Methods whereby a hedge is accomplished

Q : What is the real rate of interest you receive after tax

Q : Present value for expected rate of inflation

Q : What is the equilibrium nominal interest rate

Q : Meeting up the payroll obligation

Q : Alleged price fixing of tickets

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the real rate of interest you receive after tax

Reference No:- TGS01451312

Recent Questions Asked Finance Basics

Q : Investment bank the firm uses to issue stock

Q : Straight-line depreciation and financial statements

Q : What is the annualized return an investor

Q : Methods whereby a hedge is accomplished

Q : What is the real rate of interest you receive after tax

Q : Present value for expected rate of inflation

Q : What is the equilibrium nominal interest rate

Q : Meeting up the payroll obligation

Q : Alleged price fixing of tickets

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