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Question: can you please explain to me how you arrive at...

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19. Bo has $200 and is considering two different investment opportunities for his money. The first option is a savings account that will yield $264.50 after 2 years of compound annual interest. The second option is a short-term bond that will yield $234 after only 1 year. If the annual inflation rate is 3%, which of these two options has a higher real interest rate? a. Option 1 b. Option 2 c. They are equal and negative d. They are equal and positive

Can you please explain to me how you arrive at the answer of B? I'm confused.

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