Antonio would like to replace his golf clubs with a custom measured set. The local sporting goods megastore is advertising custom clubs for $600, including a new bed. And store financing is available at 3.06%, or he can choose not to redo his four dollar certificate deposit, which just matured. The advertised CD renewal rate is 4.05%. Antonio knows the in-store financing costs would not affect his taxes, but he knows he'll pay taxes (25% federal and 5.7% state) on the CD interest earnings. Should he cash the CD or use the in-store financing? Why?

1) The after-tax CD earnings rate is __%

h-stote Inancked? Why? The after hax C0 nactinged rater it Bioure th ters decinal places 1