The country of Veridian has a tax system identical to that of the United States. Suppose someone in Veridian bought a parcel of land for 10,000 deera (the local currency) in 1964 when the price index equaled 100. In 2005, the person sold the land for 100,000 deera, and the price index equaled 500. The tax rate on nominal gains was 20%.

1. Compute the taxes the person paid on the nominal gain.
2. Compute the change in the real value of the land in terms of 2005 prices
3. Compute the after-tax real capital gain