You Put Money into an Account and Earn a Real

question 71

Multiple Choice

You put money into an account and earn a real interest rate of 5 percent.Inflation is 2 percent,and your marginal tax rate is 35 percent.What is your after-tax real rate of interest?

• A)5.25 percent
• B)3.05 percent
• C)2.55 percent
• D)1.25 percent

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Definitions:

Regular Care

Ongoing, consistent attention and services provided to maintain health or manage a condition, often in a healthcare or caregiving context.

Custodial Grandparents

Grandparents who have legal custody or guardianship of their grandchildren and are responsible for their care.

Grandchild

A child of one's son or daughter, forming an important part of extended family relationships and generational bonds.

Maintained

The process of keeping something in good condition by checking or repairing it regularly.