[All Steps] You are trying to decide where to invest $10,000 for one year. There are two alternatives. One alternative provides tax-exempt interest. The
Question: You are trying to decide where to invest $10,000 for one year. There are two alternatives. One alternative provides tax-exempt interest. The other does not. The rate of interest on the alternative that is not tax-exempt is 15%. What interest rate on the tax-exempt loan would leave you Indifferent to the two alternatives, assuming that they are similar in every respect except taxability of interest, given the following tax rates:
a.20%
b.60%
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