What is the inflation-adjusted rate of return per year

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Reference no: EM13771112

A friend borrows $1280 today and promises to pay you back $2190 in 5 years. If inflation is expected to be 3.9% per year during this time, what is

(a) the inflation-adjusted rate of return per year?

(b) the real rate of return per year?

Reference no: EM13771112

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