Question
An investor located in the US is planning to invest $24,000 in a fund in Brazil that promises a risk free interest rate of 8.25%.
An investor located in the US is planning to invest $24,000 in a fund in Brazil that promises a risk free interest rate of 8.25%. The current exchange rate is Et = 5.45 and the investor believes the future exchange rate will be Et+1 = 5.32. What is the future value of a one year investment in Brazil, measured in US dollars?
A. $26,110.55
B. $26,614.85
C. $27,040.22
D. $27,559.39
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The International Handbook Of Public Financial Management
Authors: Richard Allen, Richard Hemming, B. Potter
1st Edition
1137574895, 978-1137574893
