(a) If $100 at Time 0 will be worth $110 a year hence and was $90 a...

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(a) If $100 at Time "0" will be worth $110 a year hence and was $90 a year ago, compute the interest rate for the past year and the interest rate next year.
(b) Assume that $90 invested a year ago will return $110 a year from now. What is the annual interest rate in this situation?
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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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