7. Below are bank bid and ask rates.

Bid rate of $0.0403/Mexican Peso

Ask rate of $0.0443/Mexican Peso

Bid rate of $0.1279/Guatemalan Quetzales

Ask rate of $0.1339/ Guatemalan Quetzales

You start a trip to the Guatemala with $8,000 in cash and convert that amount into Quetzales. You are able

to pay everything by credit card, so you convert your Quetzales back into U.S. dollars when you leave.

a.Calculate the number of dollars you now have.

You then travel to Mexico, and convert all your U.S. dollars into Pesos. You are once again able to pay

everything by credit card, so you convert your Pesos back into U.S. dollars when you leave.

b.Calculate the number of dollars you now have.