Business, 23.11.2019 05:31 dchannakhone84
You deposit $1000 in the bank for one year. case 1: infla4on = 0%, nom. interest rate = 10% case 2: infla4on = 10%, nom. interest rate = 20% a. in which case does the real value of your deposit grow the most? assume the tax rate is 25%. b. in which case do you pay the most taxes? c. compute the aner-‐tax nominal interest rate, then subtract infla4on to get the aner-‐tax real interest rate for both cases.
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You deposit $1000 in the bank for one year. case 1: infla4on = 0%, nom. interest rate = 10% case 2:...
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