You put money into an account and earn a real interest rate of 4 percent. inflation is 2 percent, and your marginal tax rate is 25 percent. what is your after-tax real rate of interest?

To figure out your after-tax real rate of interest, you will have to a few things. First, you will take the real interest rate of 4% and subtract it from inflation, which is 2%. You end up with 2%. You then take .25 and take it takes .02 to find your answer. Which is 12.5%