Determine real rate of interest

Reference no: EM1359550

16. If you invest in CDs earning an interest rate of 9%, the interest is taxable in the 28% bracket, and inflation is 5%, what is the real rate of interest you receive after tax?

17. If you invest in CDs earning an interest rate of 4%, the interest is taxable in the 28% bracket, and inflation is 3%, what is the real rate of interest you receive after tax?

Reference no: EM1359550

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