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(4) Alia received $550 from her uncle. Shes thinking about buying a new phone that costs $500 today. Suppose the interest rate is 10 percent

(4) Alia received $550 from her uncle. Shes thinking about buying a new phone that costs $500 today. Suppose the interest rate is 10 percent per year and the rate of inflation is 20 percent per year. What will be the cost of the phone in one year? Will she be able to buy the phone in one year?

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