If the nominal interest rate is 11%,the inflation rate is 4% and the tax rate is 25%,what is the real after-tax interest rate?

Name: If the nominal interest rate is 11%,the inflation rate is 4% and the tax rate is 25%,what is the real after-tax interest rate?
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Question

Quizplus · Accepted Answer

The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate: 11% - 4% = 7%. The after-tax nominal interest rate is 11% * (1 - 0.25) = 8.25%. The real after-tax interest rate is then 8.25% - 4% = 4.25%.

If the Nominal Interest Rate Is 11%,the Inflation Rate Is