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    This post calculates an actual after tax real rate of return

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

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    The following equation can be written based on the information ...

    Solution Summary

    This solution calculates the investor's actual real after tax rate of return.