Taxable Income (S) 0-16.000 16.000 - 39.000 39.000 - 55.000 55.000 - 70.000 70.000 - 86.000 Tax Rate 10% 12% 16% 19% 23% 3. Suppose that an investment promises to pay a real 9% annual rate of interest and inflation rate is 3%. What is the effective annual interest rate on this investment assuming that interest is compounded quarterly? (10p) NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. 4. Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments at the end of each year. The interest rate is 5 percent per year. (20p) NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS