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I know this is simpler than I'm making it, so a quick explanation/formula would be great! I saw a similar problem but when I followed the same technique, I was incorrect.

An investment offers a 13 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 7 percent.

Required:

What does Bill believe the inflation rate will be over the next year?

 

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