Real return-inflation-free interest-market interest rate

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Reference no: EM131052300

If you are looking for a 4% real return (inflation-free interest) on your investment, would you be interested in an investment opportunity that produces a 10% return on investment (market interest rate) if the inflation rate is 6%? it says that the answer is interest rate=4% and the general inflation rate f= 6% and the interest rate is 10.24%. Can someone please explain this to me?

Reference no: EM131052300

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