Assuming a​ 1-year, money market account investment at 5.38 percent​ (APY), a 3.1% inflation​ rate, a 35 percent marginal tax​ bracket, and a constant ​$30,000 ​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 5.38% (APY), a 35% marginal tax bracket, and a constant $30,000 balance the after-tax rate of return is? Assuming a​ 1-year, money market account investment at 5.38% (APY), a 35% marginal tax​ bracket, and a constant ​$30,000 balance the​ after-tax monetary return is? Given an​ after-tax return of 3.50​% and an inflation rate of 3.1​% the​after-tax real return is? Given an​ after-tax return of 3.50​% and an inflation rate of 3.1​% the​ after-tax real monetary return is?

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 5.38 percent​ (APY), a 3.1% inflation​ rate, a 35 percent marginal tax​ bracket, and a constant ​$30,000 ​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 5.38% (APY), a 35% marginal tax bracket, and a constant $30,000 balance the after-tax rate of return is?

Assuming a​ 1-year, money market account investment at 5.38% (APY), a 35% marginal tax​ bracket, and a constant ​$30,000 balance the​ after-tax monetary return is?

Given an​ after-tax return of 3.50​% and an inflation rate of 3.1​% the​after-tax real return is?

Given an​ after-tax return of 3.50​% and an inflation rate of 3.1​% the​ after-tax real monetary return is?

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