Optimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. Suppose the
average rate paid by banks on savings accounts is 0.65% at a time when inflation is around 1.45%.
For the average saver, the real rate of interest on his or her savings is -0 80 %. If banks expect that the rate of inflation in the coming year will be 445% and they want a real return of 6% on a certain category of loans, then the nominal rate they should charge borrowers on those loans is ______ %
For the average saver, the real rate of interest on his or her savings is -0 80 %. If banks expect that the rate of inflation in the coming year will be 445% and they want a real return of 6% on a certain category of loans, then the nominal rate they should charge borrowers on those loans is ______ %
1 answer:
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It is I, Dio. You are a fool to approach me.
Answer:
Given that,
Taxable income = $75,000
Interest from an investment = $10,000
Using the U.S tax rate schedule in 2017
(a) Federal tax will he owe = $5,226.25 + 25% × ($75,000 - $37,950)
= $5,226.25 + $9262.5
= $14,488.75
(b)
= 19.32%.
(c)
= 17.05%
(d) Chuck is currently in the 25 percent tax rate bracket.
His marginal tax rate on increases in income up to $16,900 and deductions from income up to $37,050 is 25 percent.