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Trevor borrowed $200 from Jessica in January, promising to pay her back $205 a year later. That is, they agreed to a 2.5% annual interest

Trevor borrowed $200 from Jessica in January, promising to pay her back $205 a year later. That is, they agreed to a 2.5% annual interest rate. Over the course of the year, prices increased by 4%. What was the real rate of interest on the loan? Group of answer choices 2.5% 4% 1.5% -1.5% 5.5% -2.5%

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