Assuming a 1-year, money market account investment at 5.09 percent (APY), a 3.21% inflation rate, a 28 percent marginal tax bracket, and a constant $30,000 balance, calculate the after-tax rate of return, the real return and the total monetary return. What are the implications of this result for cash management decisions?
Assuming a 1-year, money market account investment at 5.09 percent (APY), a 3.21% inflation rate, a...
Assuming a 1-year, money market account investment at 2.09 percent (APY), a 0.86% inflation rate, a 25 percent marginal tax bracket, and a constant $40,000 balance, calculate the after-tax rate of return, the real return and the total monetary return. What are the implications of this result for cash management decisions? Assuming a 1-year, money market account investment at 2.09 percent (APY), a 25 percent marginal tax bracket, and a constant $40,000 balance the after-tax rate of return is 1.57...
Assuming a 1-year, money market account investment at 3.09 percent (APY), a 2.01% inflation rate, a 15 percent marginal tax bracket, and a constant $60,000 balance, calculate the after-tax rate of return, the real return and the total monetary return. What are the implications of this result for cash management decisions?
The inflation rate over the past year was 2.8 percent. If an investment had a real return of 6.5 percent, what was the nominal return on the investment?
An investment had a nominal return of 10.1 percent last year. The inflation rate was 3.5 percent. What was the real return on the investment?
An investment had a nominal return of 11.2 percent last year. The inflation rate was 3.4 percent. What was the real return on the investment?
Suppose the money market annual yield (interest rate) is 1.50%. In the meantime, the one-year inflation rate based on Consumer Price Index (CPI) was 2.0%. If the expected inflation rate remains the same for the next year, what is the expected real interest rate for the money market investment?
An investment had a nominal return of 10.6 percent last year. The inflation rate was 2.2 percent. What was the real return on the investment? 13.03% 8.22% 10.31% 9.13% 7.59%
1. Assuming that the pure rate of interest is 2%, and investors require an inflation premium of 3.5% and a risk premium of 6% to invest in a certain security, calculate the following rates using the multiplicative form of the Fisher model: The nominal rate of interest on the security The real rate of interest on the security The risk-free rate of interest on securities of this maturity (2 decimal places) 2. An Inyo County California municipal bond is...
The inflation rate over the past year was 1.8 percent. If an investment had a real return of 72 percent, what was the nominal return on the investment? Multiple Choice o 913ж o 5.30% o 964 o 10.14% o 504
1. (15) Annual inflation is 4.29% and account market interest rate is 9.62%. What is the real rate of return on the account? Answer