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Taren bought an investment one year ago and wanted to complete some calculations pertaining to the investment's return. The exact real return was 6.75% and

Taren bought an investment one year ago and wanted to complete some calculations pertaining to the investment's return. The exact real return was 6.75% and inflation over the period was 4.28%. 



What was the exact nominal return? What was the approximate nominal return? Why are the two values different?

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