Question 8-D: An investor lends $10,000 today, to be repaid in a lump sum ...

Engineering Economy

An investor lends $10,000 today, to be repaid in a lump sum at the end of 10 years with interest at 10% (= i $_{m}$ ) compounded annually. What is the real rate of return, assuming that the general price inflation rate is 8% annually? (8.2)

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