The current indirect rate is 110, the interest rate in the foreign country is 7%, the interest rate in the home country is 5%. What is the forward indirect rate if t = 2?
A) 122.65
B) 114.23
C) 124.78
D) 125.55
Answer: B
Explanation: B) Forward Indirect Ratet = Current Indirect Rate × = 110 × = 114.23.
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