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Would it not just be q? Since I am assuming that 1.025 is the interest rate of the bank hence why it would be multiplied by the year.
I = Prt
I=1020
r=0.12 (12% converted to decimal by dividing by 100)
t=5
1020=P(0.12)(5)
1020=P(0.6)
P=1700
Answer:
The gain is of $17.50
Step-by-step explanation:
When you buy the bond the exchange rate is $1.50 = £1.
You pay £45 =
=$67.50 for the British bond.
No, you sell the bond for £50 and the exchange rate is $1.70 = £1.
So, you earned
dollars
Your gain is
= $17.50