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masha68 [24]
3 years ago
11

If the current exchange rate is 1.00 euro per dollar and the expected exchange rate at the end of the month rises to 1.20 euros

per dollar, then the demand for dollars ________ because people expect holding of dollars to become ________ profitable.
Business
1 answer:
dangina [55]3 years ago
7 0

Answer:

Increases; More

Explanation:

Given that,

Current exchange rate:

$1 = 1 euro

Expected exchange rate:

$1 = 1.20 euros

The above exchange rate indicates that there is an appreciation in value of dollar and a depreciation in the value of euro. An appreciation of a dollar will lead to increase the demand for dollar because people expect that holding dollar is more profitable than euro.

With the expected exchange rate, a europian resident have to pay more for per dollar purchase in future as compared to the current exchange rate.

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Answer:

b.$1,150

Explanation:

Sales Collection   $5,000*.98                      $4,900

Payment of purchases  $5,000*50%            ($2,500)

Other payments            $5,000*25%             ($1,250)

Net Cash flow during a typical month             $1,150      

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Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent. $200
PIT_PIT [208]

Answer:

Normal:

$ 3,509.7470

$    563.7093

$ 2,000.00

Due:    

 $3,930.9167

 $   597.5319

 $ 2,000.00

Explanation:

We solve using the formula for common annuity and annuity-due on each case:

C \times \frac{(1+r)^{time} }{rate} = FV\\

C \times \frac{(1+r)^{time} }{rate}(1+rate) = FV\\ (annuity-due)

<u>First:</u>

C 200.00

time 10

rate 0.12

200 \times \frac{11+0.12)^{10} }{0.12} = FV\\

200 \times \frac{11+0.12)^{10} }{0.12}(1+0.12) = FV\\

Normal:  $3,509.7470

Due:       $3,930.9167

<u>Second:</u>

100 \times \frac{(1+0.06)^{5} }{0.06} = FV\\

100 \times \frac{(1+0.06)^{5} }{0.06} (1+0.06)= FV\\

$563.7093

$597.5319

<u>Third:</u>

No interest so no time value of money the future value is the same as the sum of the receipts regardless of time or being paid at the beginning or ending.

1,000  + 1,000 = 2,000

4 0
3 years ago
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