Determine purchasing power increase

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Reference no: EM1347608

Last year, you earned a nominal rate of return of 9.25 percent on your bond investments. During that time, the inflation rate was 2.45 percent. How much did your purchasing power increase (real rate) ?
Answer
7.75 percent
7.25 percent
5.71 percent
6.64 percent
12.41 percent

Reference no: EM1347608

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