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blagie [28]
3 years ago
5

You're considering an investment that you expect will produce a return of 77 percent next​ year, and you expect that your real r

ate of return on this investment will be 33 percent. what do you expect inflation to be next​ year?
Business
1 answer:
den301095 [7]3 years ago
6 0

This problem is simply straight forward. The total rate of return is simply the sum of the real rate of return and the inflation rate, that is:

77% = 33% + Inflation Rate

Therefore inflation is:

Inflation Rate = 77% - 33%

<span>Inflation Rate = 44%</span>

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