Mary Bought a Bond ​A Debt Security for $2,500 with a Nominal

question 23

Multiple Choice

Mary bought a bond ​a debt security for $2,500 with a nominal interest rate of 5 percent.If the inflation rate is 4 percent and Mary must pay 30 percent of her income in taxes, her after-tax nominal interest income is .

• A)​$87.50
• B)​$22.50
• C)​$37.50
• D)​$48.50

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Definitions:

Lichen

Symbiotic organisms composed of a fungus and a photosynthetic partner (usually an alga or cyanobacterium) that live together and function as a single ecological unit.

Benefit From Each Other

A situation or relationship in which all parties involved gain advantages or positives from their association or interaction.

Plant Parasites

Organisms that derive nutrients at the expense of plants, often causing harm to their plant hosts.

Armillaria

A genus of parasitic fungi known to cause root rot in plants, some species of which are bioluminescent.