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Assume the Expected Inflation Rate Is 5% for Each of the Next

Question 99

Multiple Choice

Assume the expected inflation rate is 5% for each of the next two years and 7% per year for the three years after. Calculate the inflation adjustment (INFL) for a 5-year loan.


A) 6.2%
B) 6.5%
C) 7.0%
D) 7.5%

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