Suppose One Year Ago the Price Index Was 120 and Maria

question 92

Multiple Choice

Suppose one year ago the price index was 120 and Maria purchased $20,000 worth of bonds.One year later the price index is 126.Maria redeems her bonds for $22,700 and is in a 40 percent tax bracket.What is Maria's real after-tax rate of interest to the nearest tenth of a percent?

• A)5.1 percent
• B)3.1 percent
• C)2.1 percent
• D)2.4 percent

---

Definitions:

Kwakwaka'wakw Mask

Traditional ceremonial masks created by the Kwakwaka'wakw people, a Pacific Northwest Coast Indigenous group, representing various aspects of their culture and spirituality.

Pervasive Theme

A recurrent subject, idea, or concept that is widely found or present in a particular work of art, literature, or thought.

Transformation

The process or instance of changing in form, appearance, nature, or character, often signifying growth or evolution.

Shield Paintings

Artistic works that incorporate the design or shape of shields, often drawing inspiration from actual historical or cultural shields.