Given a nominal interest rate of 6 percent,in which case would you earn the lowest after-tax real rate of interest?

Question

Quizplus · Accepted Answer

In A, the after-tax real rate of interest would be 0.25(0.06 - 0.04) = 0.005 or 0.5%. 
In B, the after-tax real rate of interest would be 0.20(0.06 - 0.03) = 0.006 or 0.6%. 
In C, the after-tax real rate of interest would be 0.15(0.06 - 0.02) = 0.006 or 0.6%. 
Option D is incorrect because the after-tax real interest rate will indeed vary based on the given parameters.

Given a Nominal Interest Rate of 6 Percent,in Which Case