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If the price of a loaf of bread has tripled over the past 8 years, what has been the annual rate of inflation in the price of
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Answer #1

FV = PV(1+r)^n

3 = 1(1+r)^8

(1+r)^8 = 3 / 1

= 3

1+r = 3^(1/8)

= 1.1472

r = 1.1472 - 1

= 0.1472 i.e 14.72%

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