Suppose the Tax Rate on Interest Income Is 25 Per

Suppose the tax rate on interest income is 25 per cent, the real interest rate is 4 per cent, and the inflation rate is 4 per cent. In this case, the real after-tax interest rate is

A) 4.0 per cent.
B) 3.5 per cent.
C) 1.0 per cent.
D) 0.5 per cent.
E) 2.0 per cent.