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Rashied recently borrowed money to purchase an automobile at a nominal interest rate of 8% per year. If the inflation rate is 6% per year,
Rashied recently borrowed money to purchase an automobile at a nominal interest rate of 8% per year. If the inflation rate is 6% per year, what is the real rate of interest on the loan? A. 6% per year. B. 2% per year C. 4% per year D. 8% per year.
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