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xz_007 [3.2K]
3 years ago
12

What is the expected dollar rate of return on dollar deposits with today's exchange rate at $1.10 per euro, next year's expected

exchange rate at $1.165 per euro, the dollar interest rate at 10%, and the euro interest rate at 5%
Business
1 answer:
allsm [11]3 years ago
4 0

Answer:

B. 11%

Explanation:

Recall that

Dollar return on euros = Euro interest rate + [(current exchange rate per euro - initial exchange rate per euro) ÷ initial exchange rate per euro]

Given that

Euro interest rate = 0.05 or 5%

Initial exchange rate = 1.10

Current exchange rate = 1.165

Therefore

Dollar return on Euros = 0.05 + [(1.165 - 1.10) ÷ 1.10]

= 0.05 + [0.065 ÷ 1.10]

= 0.05 + 0.059

= 0.109

OR

= 10.9 %

= 11%

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Answer:

Explanation:

Given:

Discount = original price × discount fraction

Discounted price = original price - discount

Discount fraction = 20%

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A.

Original price of shirt = $x

Original price of hat = $(x + 10)

Discounted price of shirt = $x - $0.2x

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Difference of discounted price of hat to shirt = 0.8(x + 10) - 0.8x

= $8

B.

Original price of shirt = $x

Original price of hat = $ 1.5 × x

Discounted price of shirt = $x - $0.2x

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Discounted price of hat = $ 1.5 × x

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= $ 1.2x

Difference of discounted price of hat to shirt = 1.2x - 0.8x

= $ 0.4x

3 0
3 years ago
Ramon's checking account requires that he maintain a minimum balance of $2000 to avoid a monthly service fee, and his balance at
allsm [11]

no his lowest balance so far this month has been $1966.18.

4 0
4 years ago
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Which of the following businesses describes a branch?
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Orlando has a loan with an effective interest rate of 7.918%, compounded annually. Which of the following must be true?
Anon25 [30]
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