Question
Assuming a 1-year money market account investment at 1.5 percent (APY), a 2.5 percent inflation rate, a 28 percent marginal tax bracket, and a constant
Assuming a 1-year money market account investment at 1.5 percent (APY), a 2.5 percent inflation rate, a 28 percent marginal tax bracket, and a constant 50,000 balance, calculate the after-tax rate of return, the real rate of return and the total monetary return. What are the implications of this result for cash management decisions?
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Monetary Policy And Public Finance
Authors: G. C. Hockley
1st Edition
1138704792, 978-1138704794
