The real rate of return and the total monetary return

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Assuming a 1-year money market account investment at 1.5 percent (APY), a 2.5 percent inflation rate, a 28 percent marginal tax bracket, and a constant 50,000 balance, calculate the after-tax rate of return, the real rate of return and the total monetary return. What are the implications of this result for cash management decisions?

Reference no: EM131825190

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