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Find the equivalent level annual real rate of return

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Reference no: EM132752332

Question: Consider an investment of $1000 with a yield rate of 8% during the first year and 7% during the second year. The inflation rate is 2.5% during the first year and 2.7% during the second year. Find the equivalent level annual REAL rate of return for the 2 years. (The rates are in effective per annum form)

Reference no: EM132752332

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