Can someone help me on the last question, Here are my equations.

Option B: earns 3% simple interest per year.

Year 1: $5000 x 3% = $150

Year 2: $5000 x 3% = $150

Year 3: $5000 x 3% = $150

Total interest earned: $450

Taxes on interest earned: $450 x 10% = $45

Inflation on interest earned: $450 x 3% = $13.5

After-tax real rate of return: $450 - $45 - $13.50 = 391.5


Option F: earns 3% compound interest per year.

Year 1: $5000 x 3% = $150

Year 2: $5000 x $150 = $5150 x 3% = $154.5

Year 3: $154.5 + $5150 = $5304.5 x 3% = $159.14

Total compound interest earned: $463.64

Taxes on interest earned: $463.64 x 10% = $46.36

Inflation on interest earned: $463.64 x 3% = $13.91

After-tax real rate of return: $463.64 – $46.36 – $13.91 = $403.37

Compile your calculations and make a recommendation. Of the savings options that you chose, which would you recommend a depositor use? Use complete sentences to explain why one option would be more beneficial than the other based on the after-tax rate of return?​