Question
an investor in the United States bought a one-year Brazilian security valued at 195,000 Brazilian Reals. The US dollar equivalent was 100,000 the Brazilian security
an investor in the United States bought a one-year Brazilian security valued at 195,000 Brazilian Reals. The US dollar equivalent was 100,000 the Brazilian security earned 16% during the year, but the Brazilian real depreciated 5% against the US dollar during the time period ($0.51 to $0.46). after transferring the funds back to the United States, what was the investors return on her $100,000? Determine the total ending value of the Brazilian investment in Brazilian Reals and then translate this Brazilian value to the US Dollars. Then compute the return on the $100,000.
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