Question
Megahurtz International Car Rentals has rent-a-car outlets throughout the world. It keeps funds for transaction purposes in many foreign currencies. Assume that in 20XX it
Megahurtz International Car Rentals has rent-a-car outlets throughout the world. It keeps funds for transaction purposes in many foreign currencies. Assume that in 20XX it held 230,000 reals in Brazil worth $160,000. It earned 11 percent interest, but the real declined 21 percent against the dollar.
a. What is the value of its holdings, based on Canadian dollars, at year-end? (Do not round intermediate calculations.)
Value of the holdings= $
b. What is the value of its holdings, based on Canadian dollars, at year-end if it earned 8 percent and the real went up by 12 percent against the dollar? (Do not round intermediate calculations.)
Value of the holdings= $
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