Option C is correct
Explanation:
Given data:
Rate of interest given: 8.5%, top federal tax bracket = 25%,
The following formula will be used in order to calculate the after tax-return
After tax return = Interest * (1- tax rate)
= 8.5 * (1-0.25)
= 6.38%
Therefore, from the given options, C option will be the correct one.
(after tax-return is the return which is calculated on the profits that has been realized by an business organization and after subtracting the taxes that has been due)
