What was the annual real interest rate earned on investment

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The incredible shrinking $50 bill in 1957 was worth $50, but in 2007 it is worth only $6.16.

a. What was the compounded average annual inflation rate (loss of purchasing power) during this period of time?

b. Fifty dollars invested in teh stock market in 1957 was worth $1,941 in 2007. In view of your answer to part A, what was the annual real interest rate earned on this investment?

Reference no: EM131096823

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