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Mathematics, 23.12.2021 02:50 dondre72

Just a quick question. How am I supposed to approach this, obviously I'm given two growth rates but I'm not sure what to do with them: Suppose one year ago the price index was 120 and Amy purchased $20,000 worth of bonds. One year later the price index is 126. Amy redeems her bonds for $22,250 and is in a 40 percent tax bracket. What is Amy’s real after-tax rate of interest?

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