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Ruralville is suffering a 1% annual loss of population and property values. Even so, Ruralville must maintain its tax collections at a constant value of $3.2 million. If the inflation rate is 4.5%, what inflation rate in taxes for the remaining taxpayers is required for Ruralville to attain its goal? (Note : Although Ruralville uses a rate of 6% for discounting purposes, that rate is irrelevant to this problem.)

Business Economics, Economics

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