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2. The interest rates on deposits for three consecutive years are 12.5%, 14% and 11%. During these years inflation rates are 11%, 16% and 12%.
2. The interest rates on deposits for three consecutive years are 12.5%, 14% and 11%. During these years inflation rates are 11%, 16% and 12%. a) Compute the final nominal value and the final real value after three years of an initial annual deposit of 1,000. b) Compute the nominal interest and the real interest after three years.
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