What Is the One Year Interest Rate One Year from Now

question 96

Multiple Choice

What is the one year interest rate one year from now if the current one-year interest rate is 2.87 percent and the two-year interest rate is 3.11 percent? Assume the rates are effective annual rates.

• A) 3.22 percent
• B) 3.27 percent
• C) 3.31 percent
• D) 3.35 percent
• E) 3.38 percent

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Definitions:

Labor Force

The total number of people employed and unemployed, who are actively seeking employment.

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Policies or programs designed to encourage immigration from a wide range of cultural, racial, or ethnic backgrounds.

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A scheduled, periodic event typically organized by a state or organization where participants can win prizes based on chance.

U.S. Labor Force

The total number of people available for work in the United States, including those who are currently employed and those who are actively seeking employment.