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    Fisher effect

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    16. If you invest in CDs earning an interest rate of 9%, the interest is taxable in the 28%
    bracket, and inflation is 5%, what is the real rate of interest you receive after tax?

    17. If you invest in CDs earning an interest rate of 4%, the interest is taxable in the 28%
    bracket, and inflation is 3%, what is the real rate of interest you receive after tax?

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    https://brainmass.com/business/finance/fisher-effect-interest-rates-170893

    Solution Summary

    This posting provides the solution to the student's question. The Fisher Effects for interest rates are provided.

    $2.19

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