After tax nominal return = 0.1 * (1 - 0.45) = 0.055
After tax real rate of return = 1.055/1.13 - 1
After tax real rate of return = -0.066371681
After tax real rate of return = -6.64%
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Joe's savings earn an annual effective rate of i=0.1 on which 45% tax is paid. If...
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Suppose that for the coming year inflation is forecast at an effective annual rate of r = 5% and interest is forecast at effective annual rate i=8%. Find the real rate of return. Round your answer to 3 decimal places.
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(1 point) Problem 3 -Unknown and Varying Interest At an annual effective rate of interest i, the following 2 payment streams...
Please show the work/formulas.
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I just need part C.
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