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1. Suppose the general inflation rate ) 5% and the inflation-free interest rate i' is 10%, please determine the market interest rate i. (10%) 2.

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1. Suppose the general inflation rate ) 5% and the inflation-free interest rate i' is 10%, please determine the market interest rate i. (10%) 2. What is the future worth of an equal payment series of $8,000 each for 6 years if the interest rate is 10%, compounded monthly? (20%)

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