a. If the inflation rate was 8%, and the tax rate was 20%, and you deposited money in a bank account that pays 12%, what is your after-tax real interest rate?
b. If the inflation rate was 10%, and the tax rate was 25%, and you deposited money in a bank account that paid 14%, what is after-tax real interest rate?
c. You earn a nominal return of 6% on your savings and the tax rate is 20%. If the rate of inflation is 2%, what is the before-tax real interest rate?
d. You earn a nominal return of 6% on your savings and the tax rate is 20%. If the rate of inflation is 2%, what is your after-tax rate of return?
