You put money into an account and earn a real interest rate of 4 percent. inflation is 2 percent, and your marginal tax rate is 25 percent. what is your after-tax real rate of interest?

Question

Rory Mcfarland

Social Studies

20 September, 03:15

You put money into an account and earn a real interest rate of 4 percent. inflation is 2 percent, and your marginal tax rate is 25 percent. what is your after-tax real rate of interest?

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Jordon Alvarado · Answer 1

To figure out your after-tax real rate of interest, you will have to a few things. First, you will take the real interest rate of 4% and subtract it from inflation, which is 2%. You end up with 2%. You then take. 25 and take it takes. 02 to find your answer. Which is 12.5%