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You have deposited $5,000 in a bank for 3 years which pays an annual interest of 5%. At the end of each year you are

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You have deposited $5,000 in a bank for 3 years which pays an annual interest of 5%. At the end of each year you are withdrawing the interest earned. The average inflation during this period is 3%. Fill up the following table to determine after tax cash flow for this investment. Assume that you are in a 28% marginal tax bracket. Write down the equation for computing the inflation adjusted, after tax rate of return for this investment. Do not compute the actual rate of return. Before Tax Income After tax Inflation adjusted, after cash flow tax cash flow tax cash flow

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