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10 pts A loan of $100,000 today requests you repay it in full (principal and interest, nomina APR of 6.7% compounded monthly) at the end

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10 pts A loan of $100,000 today requests you repay it in full (principal and interest, nomina APR of 6.7% compounded monthly) at the end of five years. Find the inflation rate such that the balance of the loan will worth a real value of $50,000, in present value term, at the end of 5 years? Express your answer in terms of EAR

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