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You are buying a sofa. You will pay $200 today and make three consecutive annual payments of $300 in the future. The real rate of

You are buying a sofa. You will pay $200 today and make three consecutive annual payments of $300 in the future. The real rate of return is 10 percent, and the expected inflation rate is 4 percent. What is the actual price of the sofa?

1001.12

891.84

278.19

561.78

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