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Suppose you invest $100,000 today and in 2 years have $200,000. At the time of your investment the Consumer Price Index (CPI) is 103. Assume

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Suppose you invest $100,000 today and in 2 years have $200,000. At the time of your investment the Consumer Price Index (CPI) is 103. Assume that in 2 years the CPI is 153. (answer to two decimals; eg, 12.34%) a. What is your nominal annual rate of return? 41.42% b. What is your real annual rate of return? 16.03% c. What is the average annual inflation rate? 21.88 %

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