You are buying a sofa you will pay 200 today and make three


You are buying a sofa. You will pay $200 today and make three consecutive annual payments of $300 in the future. The real rate of return is 14.1 percent, and the expected inflation rate is 4 percent. What is the actual price of the sofa?

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Finance Basics: You are buying a sofa you will pay 200 today and make three
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