6 . Problems and Applications Q6

Suppose the tax rate is 30%.

For each of the inflation rate and before-tax nominal interest rate combinations, complete the following table by computing the before-tax real interest rate, the after-tax nominal interest rate, and the after-tax real interest rate.

Inflation Rate	Before Tax	After Tax
(Percent)	Nominal Interest Rate	Real Interest Rate	Nominal Interest Rate	Real Interest Rate
(Percent)	(Percent)	(Percent)	(Percent)
4	10
3	8
2	6