Based on the expected annual inflation rate

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If you invest a certain amount of money today, you can profit $250,000 exactly 5 years from now. The investment pays an annual market interest rate of 10% based on the expected annual inflation rate of 4%. Assuming the real rate stays the same, how much do you need to invest today to earn that $250,000 five years from now, if the expected rate drops to 2%?

Reference no: EM131086126

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