Question: Over the last five years John's salary has risen in nominal terms from $50,000 to $63,814. Over those same five years, inflation has averaged 2%

Over the last five years John's salary has risen in nominal terms from $50,000 to $63,814.

Over those same five years, inflation has averaged 2% per year, each year.

Based on the this data, what was John's average per year raise in real terms over the five year period?

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