You put money in an account and earn a real interest rate of 8 percent. Inflation is 3 percent, and your marginal tax rate is 20 percent. Which of the following is your after-tax real rate of interest?
A)1.8 percent
B)2.8 percent
C)3.8 percent
D)5.8 percent

Question

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The Answer of You put money in an account and earn a real interest rate of 8 percent. Inflation is 3 percent, and your marginal tax rate is 20 percent. Which of the following is your after-tax real rate of interest?
A)1.8 percent
B)2.8 percent
C)3.8 percent
D)5.8 percent

You Put Money in an Account and Earn a Real