If the real interest rate is 4 percent, the marginal product of capital is 2 percent, the depreciation rate is 10 percent, the tax rate is 25 percent, and capital gain is 1 percent, what is the user cost of capital?
A) 40.9 percent
B) 7.5 percent
C) 12.5 percent
D) 10.5 percent
E) 17.3 percent

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The Answer of If the real interest rate is 4 percent, the marginal product of capital is 2 percent, the depreciation rate is 10 percent, the tax rate is 25 percent, and capital gain is 1 percent, what is the user cost of capital?
A) 40.9 percent
B) 7.5 percent
C) 12.5 percent
D) 10.5 percent
E) 17.3 percent

If the Real Interest Rate Is 4 Percent, the Marginal