Nicholas Earned 8% in His Savings Account

question 52

Multiple Choice

Nicholas earned 8% in his savings account. If he is in the 28% tax bracket, what is his after-tax savings rate of return?

• A) 2.5%
• B) 3.6%
• C) 5.76%
• D) 7.2%
• E) 28%

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Definitions:

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