Question
Rick invested $1,000 five years ago. Today he sold for $6,000. Assume the annual inflation rate for the past 5 years has been at 4%
Rick invested $1,000 five years ago. Today he sold for $6,000. Assume the annual inflation rate for the past 5 years has been at 4% and the net capital gains tax rate is 15%.
What is the after-tax real percent interest rate for this investment?
Give rate of return in percent to 3 decimal places like 24.662% or 5.132%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Economics of Public Issues
Authors: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North
19th edition
134018974, 134018973, 9780134020532 , 978-0134018973
