Assuming a 1-year, money market account investment at 3.98 percent (APY), a 3.13% inflation rate, a 10 percent marginal tax bracket, and a constant $50,000 balance, calculate the after-tax rate of return, the real return, and the total monetary return. What are the implications of this result for cash management decisions? Assuming a 1-year, money market account investment at 3.98 percent (APY), a 10 percent marginal tax bracket, and a constant $50,000 balance the after-tax rate of return is%. (Round to two decimal places.)
Assuming a 1-year, money market account investment at 3.98 percent (APY), a 3.13% inflation rate, a 10 percent marginal tax bracket, and a constant $50,000 balance, calculate the after-tax rate of return, the real return, and the total monetary return. What are the implications of this result for cash management decisions? Assuming a 1-year, money market account investment at 3.98 percent (APY), a 10 percent marginal tax bracket, and a constant $50,000 balance the after-tax rate of return is%. (Round to two decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![Assuming a 1-year, money market account investment at 3.98 percent (APY), a 3.13% inflation rate, a 10 percent marginal tax bracket, and a constant $50,000 balance, calculate the after-tax rate of return, the real return, and the total monetary return. What
are the implications of this result for cash management decisions?
Assuming a 1-year, money market account investment at 3.98 percent (APY), a 10 percent marginal tax bracket, and a constant $50,000 balance the after-tax rate of return is
%. (Round to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb0ae14e-fbff-4ff4-b483-b1163d55c0f2%2F500471b9-e8c2-48e7-bcab-d4e28482b480%2Fn3o4z5_processed.png&w=3840&q=75)
Transcribed Image Text:Assuming a 1-year, money market account investment at 3.98 percent (APY), a 3.13% inflation rate, a 10 percent marginal tax bracket, and a constant $50,000 balance, calculate the after-tax rate of return, the real return, and the total monetary return. What
are the implications of this result for cash management decisions?
Assuming a 1-year, money market account investment at 3.98 percent (APY), a 10 percent marginal tax bracket, and a constant $50,000 balance the after-tax rate of return is
%. (Round to two decimal places.)
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