Question $2$

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Over the last $50$ years New Zealand's average residential property prices have increased by $9\mathrm{.}0\%$ per annum, while New Zealand's inflation has been $6\mathrm{.}0$ per annum over the same period. What has been the real rate of return on residential property? $($Hint: use the real interest rate formula Equation $6\mathrm{.}3$ from the text. Please enter your answer in decimals and show your answer to the nearest $10$ th of a percent, i$.$e$.10\mathrm{.}1\%$ would be shown as $0\mathrm{.}101.$ Show answer to three decimal places$)$

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