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What is the actual price of the sofa

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Question 1: You are buying a sofa. You will pay $200 today and make three consecutive annual payments of $300 in the future. The real rate of return is 15.5 percent, and the expected inflation rate is 4 percent. What is the actual price of the sofa? (Do not round factor values. Round final answer to 2 decimal places, e.g. 15.25.)

Reference no: EM132918565

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