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You Earn a Nominal Return of 6% on Your Savings

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You earn a nominal return of 6% on your savings and the tax rate is 20%. If the rate of inflation is 2%, what are the before-tax real interest rate and your after-tax rate of return?


Definitions:

Personalize The Relationship

A marketing and customer service strategy focusing on tailoring interactions and communications to meet the individual needs and preferences of customers.

Trial Close

A sales technique used to gauge a prospect's readiness to buy by asking hypothetical closing questions before the actual close.

Standing-Room Close

A sales technique designed to create a sense of urgency among potential buyers, suggesting that the opportunity or product will soon be unavailable, similar to an event that has only standing room available.

Countersuggestion

A suggestion that evokes an opposite response from the prospect.

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