A friend borrows 1280 today and promises to pay you back
A friend borrows $1280 today and promises to pay you back $2190 in 5 years. If inflation is expected to be 3.9% per year during this time, what is
(a) the inflation-adjusted rate of return per year?
(b) the real rate of return per year?
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a friend borrows 1280 today and promises to pay you back 2190 in 5 years if inflation is expected to be 39 per year
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