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If the Inflation Rate Was 8%, and the Tax Rate

question 200

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If the inflation rate was 8%, and the tax rate was 20%, and you deposited money in a bank account that pays 12%, what is your after tax real interest rate? Show you work.


Definitions:

Reasonable Person Test

A legal standard used to determine whether an individual's actions were reasonable under particular circumstances.

Negligent Driving

The act of operating a vehicle in a careless or unsafe manner, resulting in potential harm to others.

Swerved

To suddenly change direction, often to avoid a collision or obstacle.

Avoid

In legal terms, to nullify or declare a contract void and unenforceable, as if it never existed.

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