Answer:
US investment value $ 26,202,800.00
UK investment value $ 26, 108,877. 58
Explanation:
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<u>Investment in US dollars invested in US:</u>
$26,000,000 x (1 + 0.0026 x 3) = $26,202,800
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<u>Investment in US invested in Great Britain:</u>
Conversion at spot rate
26,000,000 x 0.626 = £16,276,000
Interest earned;
£16,276,000 x (1 + 0.0030 x 3) = £16,422,484
Conversion at forward rate:
£16,422,484 / 0.629 = $26,108,877,58