Compute the real net average annual rate o return on a $5,000 investment that will pay a $1,200 return over 6 years. You will receive some portion of that $1,200 every year, so the long run capital gains tax rate is irrelevant. Your highest marginal tax rate is 30% and the actual rate of inflation over that period averages 4%. Assume that you are certain to get your $5,000 back. Ignore the time value of money. O None of the above. O -1.2% O 1.5% O 3%
