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You Earn a Nominal Return of 6% on Your Savings

question 68

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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:

Heterogamy

Dating or marrying someone with social characteristics that differ from your own (sometimes called exogamy).

Speed Dating

A method of meeting potential romantic partners in which participants have brief conversations with a series of individuals in order to determine mutual interest.

Stalking

The act of repeatedly following, watching, or contacting someone in a way that is threatening or invasive.

Cyberdating

The process of engaging in romantic or sexual relationships through the Internet.

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