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Suppose Caroline is a sports fan and buys only baseball caps. Caroline deposits $1,000 in a bank account that pays an annual nominal interest rate of 5%. Assume this interest rate is fixed—that is, it won't change over time. At the time of her deposit, a baseball cap is priced at $10.00.
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Suppose Caroline is a sports fan and buys only baseball caps. Caroline deposits $1,000 in a bank acc...
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