1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ksju [112]
2 years ago
10

Assume the spot exchange rate for the Hungarian forint is 267.767 HUF. Also assume the inflation rate in the United States is 1.

6 percent per year while it is 3.5 percent in Hungary. What is the expected exchange rate three years from now
Business
1 answer:
Margarita [4]2 years ago
3 0

Answer: 283.322 HUF

Explanation:

Following the information given in the question, the following can be deduced:

Spot rate = 267.767

Foreign currency interest rate (rf) = 1.6%

Home currency interest rate (rh) = 3.5%

Number of years (n) = 3

Therefore, the expected exchange rate 3 years from now will be calculated as:

= Spot × (1+(rh - rf))^n

= 267.767 × [1 + (35% - 16%)]³

= 267.767 × [1 + (0.035 - 0.016)]³

= 267.767 × 1.0581

= 283.322 HUF

Therefore, the expected exchange rate 3 years from now will be 283.322 HUF.

You might be interested in
Vivian worked as a manager at her company. She was asked to order a few cars that would be used by company employees. Which best
Arada [10]

To ensure that her company is being socially responsible, Vivian should ensure that the cars are environmentally friendly. Being socially responsible means you do what is best for planet, people, and profits. In this case, taking care of the planet means choosing the car that is the most environmentally friendly.

3 0
3 years ago
A contingency was evaluated at year-end. management felt it was probable that this would become an actual liability and the amou
yanalaym [24]
The effect on the financial reporting of the company is that the liabilities on the balance sheet would be understated. This is because at the end of the year, a possible event was calculated. The management felt from the calculation of that event that it is possible that the event could become an actual liability and that the amount could be estimated explainably. So it would become understated if these calculations of probable events cannot be written down in the balance sheet or in the notes of the final statements. It is like a forecasting of possible events that may happen in the future to prevent losses in the company.  
8 0
3 years ago
An ordinary annuity selling at $14,130.15 today promises to make equal payments at the end of each year for the next twelve year
lutik1710 [3]

Answer:

PMT = $1875.00

Explanation:

The annuity refers to a series of fixed payments made after an equal interval of time and for a definite time period. The formula for the present value of annuity is,

<u />

<u>For ordinary annuity</u>

PV of annuity = PMT * [(1 - (1+IN)^-n) / IN]

Plugging in the values for the available variables. We calculate the PMT to be,

14130.15 = PMT * [(1 - (1+0.08)^-12) / 0.08]

14130.15 = PMT * 7.536078017

14130.15 / 7.536078017   =   PMT

PMT = $1875.000493 rounded off to $1875.00

5 0
3 years ago
Scope of collective bargaining
hjlf

The goal of unionisation is to reach an agreement on pay or other terms and circumstances of the employment contract between the employer and a team of people, or perhaps the entire workforce.

<h3>What serves as a means for provision?</h3>

A provision is cash saved in the funds to cover any liabilities that may arise in the future. To improve the accuracy of something like the current year's balance, a provision is utilized to allow for costs that could, in some cases, be offset with in current or prior financial year.

<h3>Which preparations are required?</h3>

A "business make better term" lease clause stipulates that the tenant must return the doors to the home in the same condition that they found it.

To know more about Bargaining visit:

brainly.com/question/14986865

#SPJ4

8 0
9 months ago
Describe how money that you save in the bank can be channeled to an investor.
ankoles [38]
If a monthly investment is being done then you can set up a once month automatic payment.<span> Write a check in the name of investment or you can also make an electronic transfer to the establishment you are investing in. </span>
3 0
2 years ago
Read 2 more answers
Other questions:
  • There is _____ to say that a company's socially responsible actions significantly hurt its long-term economic performance.
    14·1 answer
  • Our company manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecas
    11·1 answer
  • Approximately how many Americans does Toyota employ in the manufacture, research, financing, marketing, and sales of its vehicle
    14·1 answer
  • Which of the following is an other comprehensive income item found in the statement of stockholders equity? a. Extraordinary ite
    13·1 answer
  • My sis need a boy bestie anyone wanna be that???​
    8·1 answer
  • Write a summary of the following passage: full-time employees earn vacation days at the rate of one day per month, or twelve day
    6·1 answer
  • A bank that uses a computer system to record deposits and withdrawals from its customers' checking accounts is using a(n):
    13·1 answer
  • Indirect channels for consumer goods
    6·1 answer
  • The most important useful measure of cost is
    7·1 answer
  • T. Dole invests cash and land into an existing partnership. The cash invested is $30,000 and the land has a fair market value of
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!