What Is the One-Year Interest Rate One Year from Now

question 40

Multiple Choice

What is the one-year interest rate one year from now if the current one-year interest rate is 3.49% and the two-year interest rate is 2.74%? Assume the rates are effective annual rates.

• A)1.54%
• B)1.95%
• C)2.00%
• D)3.12%
• E)4.25%

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Definitions:

Mildred Parten

A researcher known for her work on the social development and play stages of preschool children.

Personal Play

Individual engagement in activities for fun, enjoyment, or leisure, without the competitive or social aspects of group play.

Associative Play

A stage of play where children play together, sharing materials and interacting, but their play is not yet cooperative or organized towards a common goal.

Develop Physical Skills

The process of improving physical abilities such as strength, balance, and coordination through practice and training.