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Calculate the real dollar rate of return on a 5000 pound sterling deposit in a London bank in a year when the interest rate on
Calculate the real dollar rate of return on a 5000 pound sterling deposit in a London bank in a year when the interest rate on pounds is 8 percent, the dollar/pound exchange rate moves from$1.39 per pound to$1.21 per pound, and the dollar prices increase by 2 percent.
The real rate of return will be ?? percent (Enter your response as a percentage rounded to one decimal place.)
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