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Suppose you have $1200, and you want to increase your buying power by 2% one year from now. If the inflation is 9%, what effective
Suppose you have $1200, and you want to increase your buying power by 2% one year from now. If the inflation is 9%, what effective annual rate of interest do you need to earn this rate? (A) 0.0968 (B) 0.1168 (C) 0.1018 (D) 0.1068 (E) 0.1118
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