If Your After-Tax Realized Real Interest Rate Was 1 Percent

question 17

Multiple Choice

If your after-tax realized real interest rate was 1 percent over the past year and you owned a one-year bond that paid 6 percent interest, what was the inflation rate if your tax rate was 15 percent?

• A)3.95 percent
• B)4.1 percent
• C)4.25 percent
• D)5.0 percent

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Definitions:

Elimination

The process of removing waste products and toxins from the body, achieved through mechanisms such as excretion and defecation.

Ingestion

The act of consuming food, beverages, or any other material by ingestions or absorption into the organism.

Absorption

Absorption is the process by which substances are taken into the body's interior, as in the uptake of nutrients by the digestive tract.

Absorption

The process by which substances are taken up into a more assimilable form, such as nutrients from food into the bloodstream.