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Problem:

What is the opportunity cost of a checking account that requires a $500 minimum balance to avoid service charges? Assume an interest rate of 4%.

Required:

If you earn a 9% return on your savings and are in the 28% tax bracket, what is your after-tax savings rate?

Explain in detail and show all work.

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  • Category:- Basic Finance
  • Reference No.:- M91147409

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