5. Upon arrival in Chile, Karen exchanged $1,000 of U.S. currency into 4,80,000 Chilean Pesos. While returning after her two month visit, she exchanged her remaining 50,000 Pesos into $100 of U.S. currency. What amount of gain or a loss did Karen experience on the 50,000 pesos she held during her visit and converted to U.S. dollars at the departure date? A. Loss of $4. B. Gain of $4. C. Loss of $6. D. No gain or loss.

Why is the answer A?