Homework Answers
| 1] | Dollars on conversion = 100000/19.196 = | $ 5,209.42 | |
| 2] | FV of $ investment = 5209.42*(1+0.03/365)^365 = | $ 5,368.06 | |
| Effective interest rate = (1+0.03/365)^365-1 = | 3.05% | ||
| 3] | Pesos on re-conversion = 5368.06*19.658 = | 105525.32 | Pesos |
| 4] | Rate of return earned in 1 year = 105525.32/100000-1 = | 5.53% | |
| 5] | The changes in the exchange rate has helped the | ||
| family as the USD has strengthened in between and | |||
| the firm was able to get more pesos per dollar. | |||
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Exchange Rates The chart below shows the exchange rate between the U.S. dollar and the Mexican...
Exchange Rates
The chart below shows the exchange rate between the U.S. dollar
and the Mexican peso in 2015 and 2016. In these questions we’ll
focus on changes in 2015. Note that the chart
shows the exchange rate in terms of pesos per
dollar.
Suppose a meal at a restaurant in Mexico City cost 90
pesos in 2015. Read approximate figures from
the chart for the exchange rate in January 2015 and January 2016,
and use those figures to answer the following...
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Exchange Rates
The chart below shows the exchange rate between the U.S. dollar
and the Mexican peso in 2015 and 2016. In these questions we’ll
focus on changes in 2015. Note that the chart
shows the exchange rate in terms of pesos per
dollar.
Suppose a meal at a restaurant in Mexico City cost 90
pesos in 2015. Read approximate figures from
the chart for the exchange rate in January 2015 and January 2016,
and use those figures to answer the following...
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