Which opportunity provides higher after-tax interest rate

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Your best taxable investment opportunity has an EAR of 4.0 %. Your best tax-free investment opportunity has an EAR of 3.0%.; If your tax rate is 30% ,

Which opportunity provides the higher after-tax interest rate?

The (tax-free or taxable) investment opportunity has the higher after-tax interest rate with ___% (Select from the drop-down menu and round to one decimal place.)

Reference no: EM131970005

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