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Ket [755]
3 years ago
13

You put money into an account that earns a 5 percent nominal interest rate. The inflation rate is 2 percent, and your marginal t

ax rate is 40 percent. What is your after-tax real rate of interest
Business
1 answer:
spayn [35]3 years ago
4 0

Answer: 1%

Explanation:

The Nominal interest rate has not been adjusted for inflationary effects yet and as such is considered overstated.

The Real Interest rate has been adjusted for inflation and is believed to show the actual return one receives.

Tax is calculated on the Nominal rate.

After tax Nominal Rate = 5% * ( 1 - 40%)

= 3%

Then adjust for inflation to find real rate,

= 3% - 2%

= 1%

The After-tax real rate is 1%.

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D is the answer I am pretty sure
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3 years ago
A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu
guajiro [1.7K]

Answer:

$651,300

Explanation:

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3 years ago
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Answer:

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Explanation:

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If the customer is sure there will be a bear on the stock them he should sell or make a put trade.

On sale of the 1,000 shares the customer will make $5 per share, and enter a put option since the market is going bearish.

7 0
2 years ago
Please help!!! What do certifications show a potential employer?
zubka84 [21]

Answer:

I'm thinking about switching jobs, but it'll be difficult for me to get a lot of work experience before I apply. I was thinking about getting a certification in my new field to help even the odds between me and other job applicants. Do certifications matter anymore? Can they really help me land a better job, or are they a waste of time and money?

Explanation:

4 0
3 years ago
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The amount of a service cannot change. But the quality of a service can change positively or negatively

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3 years ago
Read 2 more answers
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