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Economics
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66Screen%20Shot%202014-08-12%20at%2012.0
Aug 12th, 2014

Deposit 20000

Nominal return =.443

Deposit at end of year = 20000*(1.443) =28860

Inflation rate =0.3

Deposit adjusted for inflation= 28860/1.3= 22200

Real return = (22200-20000)/20000=2200/20000=22/200=11/100=0.11=11%

Aug 12th, 2014

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