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I want to know what formula I would use to solve this aswell BHP Billiton, an Australian Multinational Company, has borrowed fund from China for
I want to know what formula I would use to solve this aswell
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) Chinese yuan Spot rate Australian dollar (A$) (CNY) Real interest rate p.a. 3.01% 3.01% Nominal interest rate p.a. 8.18% 12.21% Today's spot rate A$0.2054/CNYStep by Step Solution
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