Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I couldnt get the same answer as per my working below , can you show me how to get the same exact exact which is

image text in transcribed

I couldnt get the same answer as per my working below , can you show me how to get the same exact exact which is 438833? Thank you

image text in transcribed
BHP Billiton, an Australian Multinational Company, has borrowed fund from China for its subsidiary in China and will pay 2 million Chinese yuan (CNY) including interest in one year, Also, the BHP Billiton has the following market information and considers that the Purchasing Power Parity (PPP) does hold, How much Australian dollar the BHP Billiton will pay that equivalent to 2 million CNY after one year? (enter the whole number with no sign or symbol) In Australian dollar Chinese yuan Spot rate (A$) (CNY) 19 Real interest rate p.a. 3.22% 3.22% Nominal interest rate p.a. Home lumens 8.78% 11.37% Today's spot rate ( 0. 6878 ) (0. 1 137 ) A$0/2248/CNY I year Exchange rate = Spot rake + ( It nomin Answer: X C It now The correct answer is: 438833 = 0-2248 X ( 1+ 6. 0878 ) Cit 0. (137 ) - 0.2248 x 0-9767 0 . 2196 7 CNY 1 1000 100 43 9, 200 Dashbo

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes

11th edition

9781259278617, 77861647, 1259278611, 978-0077861643

More Books

Students also viewed these Finance questions