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A commentator on the financial markets notes that interest rates are steady at 5%, inflation has been 1.5% and you anticipate inflation rising to 2.25%.
A commentator on the financial markets notes that interest rates are steady at 5%, inflation has been 1.5% and you anticipate inflation rising to 2.25%. Given this, the real rate of return is closest to:
A. | 6.50%. | |
B. | 3.50%. | |
C. | 2.75%. |
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