An individual actually earned a 4 percent nominal return last year. prices went up by 3 percent over the year. given that the investment income was subject to a federal tax rate of 28 percent and a state and local tax rate of 6 percent, what was the investor's actual real after-tax rate of return

Actual real after tax rate of return is 0.657%

Explanation:

Use fisher method to compute real return:

=0.00971 or 0.971%

Calculate after tax return as shown below:

Federal tax rate is 28% or 0.28 and state tax is 6% or 0.06.

After tax return = 0.00971×(1 - 0.28) ×(1 - 0.06)

                        = 0.00657 or 0.657%

answer; /// the above statement is (true);

2,283,000

explanation:

i just had to add it