Mr. Alex is considering investing in a 1-year fixed-income security. Mr. Alex is required to pay GHS12,000 to acquire the security. He will receive GHS14,000 as the maturity value of the investment in a years time. The expected annual inflation is 11%. Required:

1. Compute the nominal rate of return from the investment.

2. Compute the real rate of return from the investment.

3. Suppose returns from the investment is subject to 8% investment income tax, compute the after-tax nominal rate of return and real rate of return.