What is the annual market interest rate

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Reference no: EM13802468

1. If the inflation free rate is an annual 13% and inflation is an annual 4%, what is the annual market interest rate?

a) 17.52%

b) 17%

c) 17.4%

d) 17.64%

2. If you anticipate an annual inflation rate of 4.0% in the current economy and can make an investment that is expected to appreciate at 8.0% annually, what would be your inflationfree rate of return for this investment?

a) 4.00%

b) 5.15%

c) 4.85%

d) 3.85%

Reference no: EM13802468

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