Isaac Dez. Isaac Dez Peris lives in Rio de Janeiro. While attending school in Spain he meets

Isaac Díez. Isaac Díez Peris lives in Rio de Janeiro.

While attending school in Spain he meets Juan Carlos Cordero from Guatemala. Over the summer holiday Isaac decides to visit Juan Carlos in Guatemala City for a couple of weeks. Isaac’s parents give him some spending money, R$4,500. Isaac wants to exchange it for Guatemalan quetzals (GTQ). He collects the following rates:

a. What is the Brazilian reais/Guatemalan quetzal cross rate?

b. How many quetzals will Isaac get for his reais?

Transcribed Image Text:

Spot rate on the GTQ/ cross rate GTQ10.5799 = 1.00 Spot rate on the /R$ cross rate 0.4462 R$1.00