If the Nominal Interest Rate on Saving Is 5% and the Expected

question 35

Multiple Choice

If the nominal interest rate on saving is 5% and the expected inflation rate is 2%, what is the after-tax return on saving if the tax rate is 25%?

• A)1.75%
• B)2.25%
• C)3%
• D)5.75%

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Definitions:

Old-Old

Refers to individuals who are roughly 85 years old or older, often highlighting distinctions in needs, health, and social aspects from younger elderly populations.

Aged

Referring to individuals who are considerably advanced in years; often used to describe the elderly population.

Canadian Population

The total number of people living in Canada, encompassing a diverse blend of ethnicities, cultures, and languages.

65 Years

Commonly refers to the age at which people are traditionally considered to be at the retirement age in many societies.