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Assuming a one year money market investment at 2 . 8 9 % ( APY ) , a 1 . 6 2 percent inflation rate,

Assuming a one year money market investment at 2.89%(APY), a 1.62 percent inflation rate, a 35% 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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