supposed at the US firm FIN inc Buys construction equipment for the UK firm ABC at a price of 1 million. The equipment is to be delivered to the United States and paid for in one year the current exchange rate is 0.78/$(0.78=$1). The current interest rate on a one year US treasury bill is 2.5% in the current interest-rate on a one year UK governments bond is 1.5%. If FIN Inc exchanges dollars for British Pound today and invests the Pound in UK for one year, how mang dollars does it need to exchange today in order to have 1 million in one year.

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