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Suppose you purchased a house in San Diego in January of 1994 for $75,000. You then sold that house in December of 2006 for $350,000.
Suppose you purchased a house in San Diego in January of 1994 for $75,000. You then sold that house in December of 2006 for $350,000. Assume that the CPI rose in that period from 107 to 180. What was your total nominal rate of return? How about your annual nominal rate of return? What was your total real return? How about you annual real return?
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