Multiple Choice
The real cash flow occurring in year 2 is $60,000. If the inflation rate is 5 percent per year and the real rate of interest is 2 percent per year, calculate the nominal cash flow for year 2.
A) $60,000
B) $62,424
C) $66,150
D) $63,654
Correct Answer:
Verified
Correct Answer:
Verified
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