Suppose that there is compound interest at an annual inflation adjusted rate of 1.8% and...
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Accounting
Suppose that there is compound interest at an annual inflation adjusted rate of 1.8% and that the annual rate of inflation is 2.3%. Find the force of interest corresponding to the stated rate of interest and the inflation-adjusted force of interest corresponding to the real rate of interest. In general, what can you say about the difference between the force of interest and the inflation-adjusted force of interest?
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