Greetings,

I'm trying to solve a 3 part problem which has the following questions:

a)Determine the rate of return before taxes.

After Solving: Answer: 21 %

b)If the effective income tax rate is 42 percent, what is the approximate after-tax rate of return?

After Solving: Answer: 8 %

c)What is the actual after-tax rate of return?

I don't really understand this question, I can't tell the difference between (approximate after-tax rate of return) and (actual after-tax rate of return)

Does anyone Know the difference?

thanks.