Annual inflation rates have been forecast

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The following annual inflation rates have been forecast for the next 5 years Year 1, 3% inflation, Year 2, 4% inflation, Year 3. 6% inflation, Year 4. 7%,year 5, 8 inflation Use the average annual inflation rate and 2 percent real rate to calculate the appropriate contract rate for 3-year loan and 5 year loan? Show your work

Reference no: EM131059203

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