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Nabeel received $270 as a nominal return on investment, after the 20% income tax imposed on nominal interest received. The real rate of return on
Nabeel received $270 as a nominal return on investment, after the 20% income tax imposed on nominal interest received. The real rate of return on investment was 1.8% due to the inflation rate of 3.5%. Calculate Nabeel's initial investment. Assume that income tax is the only tax imposed on nominal interest received. Round to two decimal places throughout your calculations. Enter your answer in the box below.
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