Question: 4) The current indirect rate is 110, the interest rate in the foreign country is 7%, the interest rate in the home country is 5%.

4) 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) 125.55

B) 124.78

C) 122.65

D) 114.23

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