Inflation nominal rate of return nominal after tax rate

Reference no: EM13176492

Suppose you are considering putting your savings in an investment fund. One scenario projects stable prices, and therefore, low returns. The other scenario involves high inflation and, consequently, high returns. In either case, the capital earnings tax rate is 24.0%. Calculate the nominal and real after tax returns for both scenarios. Please include at least 2 numbers after the decimal point for your answers. Do not round your answers.

Scenerio Inflation Nominal rate of return Nominal After tax rate of return Real after tax rate of return

A 2.5% 4.5% _________% _________%

B 15% 17% _________% _________%

Reference no: EM13176492

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