Based on the information given his after-tax savings rate of return is 5.62%.
After-tax saving rate of return
Using this formula
After-tax savings rate=Saving rate of return×(1-Tax rate)
Where:
Saving rate of return=7.2%
Tax rate=22%
Let plug in the formula
After-tax savings rate=0.072×0.78
After-tax savings rate=0.05616×100
After-tax savings rate=5.62% (Approximately)
Inconclusion his after-tax savings rate of return is 5.62%.
Learn more about After-tax savings rate here:https://brainly.com/question/3520758
