1. Business
  2. Finance
  3. assuming a 1year money market account investment at 509 percent...

Question: assuming a 1year money market account investment at 509 percent...

Question details

Assuming a​ 1-year, money market account investment at 5.09 percent​ (APY), a 3.21​% inflation​ rate, a 28 percent marginal tax​ bracket, and a constant ​$30,000 ​balance, calculate the​ after-tax rate of​ return, the real return and the total monetary return. What are the implications of this result for cash management​ decisions?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution