Question

Ben has ​$10,000 in his savings account and the bank pays an interest rate of 6 percent a year. The inflation rate is4

percent a year. The government taxes the interest that Ben earns on his deposit at 25 percent.

Calculate the nominal​ after-tax interest rate and the real​ after-tax interest rate that Ben earns

>>> Answer to 1 decimal place.

​>>> If your answer is​ negative, include a minus sign. If your answer is​ positive, do not include a plus sign.

The nominal​ after-tax interest rate is nothing________ percent a year.

The real​ after-tax interest rate is nothing ________ percent a year.

Answer 1