# International Fisher effect forumla - Urgent help! Exam in 2 days!

• Jan 7th 2013, 11:11 AM
Kolo
International Fisher effect forumla - Urgent help! Exam in 2 days!
http://i46.tinypic.com/120kw8y.jpg

Can anyone tell me how my lecturer got to the answer? E(St+1)= 0.7262. I've been trying to solve this for the last two hours now (Angry) btw i think she converts the percentages into decimals So 7% would = 0.07
• Jan 7th 2013, 12:23 PM
jakncoke
Re: International Fisher effect forumla - Urgent help! Exam in 2 days!
just algebra, $.70 * \frac{.11 - .07}{1 + .07} + .70 = E(S_{t+1}) = .72$
• Jan 7th 2013, 01:19 PM
Kolo
Re: International Fisher effect forumla - Urgent help! Exam in 2 days!
Thanks man. I know it was a stupid question. Haven't done Algebra for nearly 7 years now so its all lost to me and it doesn't help when you are dyslexic! Really appreciate your help and thanks for jogging my memory.
• Jan 7th 2013, 03:58 PM
jakncoke
Re: International Fisher effect forumla - Urgent help! Exam in 2 days!
Quote:

Originally Posted by Kolo
Thanks man. I know it was a stupid question. Haven't done Algebra for nearly 7 years now so its all lost to me and it doesn't help when you are dyslexic! Really appreciate your help and thanks for jogging my memory.

no probs bro, keep at it.