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If the nominal interest rate is 5% and the inflation rate is 3%, then what is the real interest rate? (Do not round intermediate calculations.

If the nominal interest rate is 5% and the inflation rate is 3%, then what is the real interest rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

*I thought it would be 2% but my homework is telling me that it is wrong.*

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