Kerry Back
\[\frac{x}{1.07 \times 1.05}\]
in beginning of 2021 dollars.
\[\frac{x}{(1+i_1) \cdots (1+i_T)}\] in date 0 dollars.
The general formula for the real rate of return \(r^*\) is
\[r^* = \frac{r-i}{1+i}\]
\[(1+r_1^*) \cdots (1+r_n^*) = \frac{(1+r_1)\cdots (1+r_T)}{(1+i_1) \cdots (1+i_T)}\]