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1. State whether the the following is true or false. (a) If an investment is safe, the corresponding interest rate is slightly higher point in
1. State whether the the following is true or false. (a) If an investment is safe, the corresponding interest rate is slightly higher point in time. (b) Annuity-certain is a series payments that granteed. (c) Payback period is the amount of cash to be recovered during the investment.[6] 2. Define the following terms. (a) Rate of return (b) Probability index (4 3. Suppose that for the coming year inflation is forecast at an effective annual rate of r = 0.15 and interest is forecast at effective annual rate i = 0.10. What will be the corresponding real, or inflation-adjusted rate of interest for the coming year
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