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Matthew Made an Investment with an 8% Annual Yield

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Matthew made an investment with an 8% annual yield. However, the real growth rate of his investment was only 5%. What was the inflation rate?

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Definitions:

Closed Loop

A closed loop refers to a control system where the output influences the input through feedback to maintain desired operation characteristics.

Kirchhoff's Laws

A set of two fundamental rules in electrical engineering that describe the conservation of current and energy in electrical circuits.

Kirchhoff's Voltage Law

A principle in electrical engineering that states the sum of electrical potential differences around any closed network is zero.

New Netherland

A 17th-century colonial province of the Dutch Republic that included parts of what are now the northeastern United States.

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