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You are pleased to see that you have been given a 6.34 % raise this year.​...

You are pleased to see that you have been given a 6.34 % raise this year.​ However, you read on the Wall Street Journal Web site that inflation over the past year has been 1.63 %. How much better off are you in terms of real purchasing​ power? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)

Your real purchasing power is ___%.

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Answer #1

Given nominal rate =6.34%=0.0634 Real Rate =R Inflation rate = 1.63%=0.0163 As we know that (1+Nominal rate) =(1+Real rate) *

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