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For calculation purposes, assume that Javon will earn a nominal rate of return of 7.00% per year compounded monthly on any investments that he has,

For calculation purposes, assume that Javon will earn a nominal rate of return of 7.00% per year compounded monthly on any investments that he has, now or in the future. Also assume that inflation will remain at a constant 2.50% per year compounded annually during the planning horizon. Javon's marginal tax rate is 35%. The tax rate on dividend income is 15%.

What is Javon's real rate of return on CPP benefits?

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