International Products has contracted for 5,000 winter hats from Russia The contract price is 1,375 rubles per hat The current direct exchange rate is 0 03562 The expected inflation rate for the next nine months is 5 in the United States and 2 in Russia If International Products will pay for the ha...

Current cost of 5000 winter hats 5000 R u 13 ...

International Products has contracted for 5,000 winter hats from Russia. The contract price is 1,375 rubles per

Question:

International Products has contracted for 5,000 winter hats from Russia. The contract price is 1,375 rubles per hat. The current direct is 0.03562. The expected inflation rate for the next nine months is 5% in the United States and 2% in Russia. If International Products will pay for the hats at delivery and scheduled delivery is nine months away, what is the cost of the hats in U.S. dollars? Did waiting the nine months to pay increase or decrease the payment (in U.S. dollars)? If so, by how much?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...