Question: (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

(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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