In January of 2014, Robin invested $25,000 into a 5-year GIC from Tangerine Bank at an annually compounded rate of 1.80% inside a non-registered, fully taxable account. She lived in the province of Alberta and earned $96,000/year through employment and, therefore, had a marginal tax rate of 36.0%. The table below shows the consumer price index (CPI) over the same period. What was Robin's after-tax real rate of return on her 5-year GIC?

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Alberta CPI 2014 2015 2016 2017 2018 2019 All-items 132.2 133.7 135.2 137.3 140.6 143.1 Alberta CPI 2014 2015 2016 2017 2018 2019 All-items 132.2 133.7 135.2 137.3 140.6 143.1

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Answer Interest rate on 5year GIC from Tangerine Bank 180 compounded annually Aft... View the full answer