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

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

just algebra, $\displaystyle .70 * \frac{.11 - .07}{1 + .07} + .70 = E(S_{t+1}) = .72 $

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.

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.