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?© BrainMass Inc. brainmass.com June 4, 2020, 2:49 am ad1c9bdddf
The following equation can be written based on the information ...
This solution calculates the investor's actual real after tax rate of return.