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PLEASE ANSWER ALL THE QUESTIONS Suppose that there is compound interest at an annual inflation adjusted rate of 1.8% and that the annual rate of
PLEASE ANSWER ALL THE QUESTIONS
Suppose that there is compound interest at an annual inflation adjusted rate of 1.8% and that the annual rate of inflation is 2.6%. Find the force of interest corresponding to the stated rate of interest. (Round your answer to three decimal places.) 4.306 Find the inflation-adjusted force of interest corresponding to the real rate of interest. (Round your answer to three decimal places.) 1.784 x In general, what can you say about the difference between the force of interest and the inflation-adjusted force of interest? O The force of interest is the same in both cases. If the actual rate of interest is higher than the adjusted rate of interest, the force of interest for the actual interest is lower. If the actual rate of interest is higher than the adjusted rate of interest, the force of interest for the actual interest is higherStep by Step Solution
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