For every $100, you receive $6. Uncle Sam takes 20% of $6, or $1.20. Your after-tax rate

Question:

For every $100, you receive $6. Uncle Sam takes 20% of $6, or $1.20. Your after-tax rate of return is

$4.80/$100 = 4.8%. You could have also computed (1 − 20%) . 6% = 4.8% directly.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: