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What is the annual inflation rate

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Reference no: EM131739238

Assume that over the past eight years, prices have increased by a total of 65%. What is the annual inflation rate?

The inflation rate is compounded annually. Compute your answer to the nearest 0.01%.

Set up a TVM equation where sometime in the future you will get your money back plus 65% of the initial investment. Solve for i (usually means interest rate, but here we can consider it inflation rate).

Reasoning/Work:

Reference no: EM131739238

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