Problem 20-7 Interest Rates and Arbitrage

The treasurer of a major U.S. firm has $22 million to invest for three months. The interest rate in the United States is .22 percent per month. The interest rate in Great Britain is .27 percent per month. The spot exchange rate is .622, and the three-month forward rate is .624. Ignore transaction costs. What would be the value of the investment in three months if the money is invested in the U.S. or Great Britain? (Enter your answers in dollars, not in millions of dollars. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 1,234,567.89.)

U.S.	$
Great Britain	$