Let us assume you have $1000 to spend on buying books. Each book costs on average $50 and are expected to increase in price by 4%. If you invest your money now, you will be able to buy 21 books in years time for what 20 books cost today. What interest rate you need to find in nominal terms to overcome effects of inflation and still realize reward for waiting?

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Q: real interest rate

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A: Since there are multiple questions posted, we will answer to only the first one.