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You deposited $ 1 , 0 0 0 in the bank. Today, the real interest rate is 2 % . Inflation is expected to be
You deposited $ in the bank. Today, the real interest rate is Inflation is expected to be next year. What percentage of interest will you ask the bank to charge for the money you deposit? How much will the money increase to after a year with this required interest rate? Can you buy a bike that is currently selling for with the money you have in savings in a year?
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