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Annual Inflation Is Expected to Be 3

Question 20

Multiple Choice

Annual inflation is expected to be 3.5% over the next 5 years. Heather's real MARR is 6%, compounded semiannually. What is the effective actual MARR per half a year?


A) 4.78%
B) 5.67%
C) 7.12%
D) 8.26%
E) 9.71%

Correct Answer:

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