The current indirect rate is 100, 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 = 3?

A) 0.94
B) 105.82
C) 110.00
D) 112.63


Answer: B
Explanation: B) Forward Indirect Ratet = Current Indirect Rate × = 100 × = 105.82.

Business

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