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If the current inflation rate is 4%, then the nominal rate necessary for you to earn an 7.1% real interest rate on your investment is

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If the current inflation rate is 4%, then the nominal rate necessary for you to earn an 7.1% real interest rate on your investment is closest to: O A. 13.7% O B. 18.2% O c. 11.4% OD. 15.9% In which of the following situations would it not be appropriate to use the following formula: PV = Co + C,/(1 + r) + Cg/(1 + r)2 + ... + C /(1 + r)" when determining the present value (PV) of a cash flow stream? O A. when the discount rate is high OB. when short-term and long-term interest rates vary widely O c. when yield curves are flat OD. when the inflation rate is high

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