Question
This is one that I am not understanding, Thank You for the help. An Investor in the united states bought a one-year Brazilian security valued
This is one that I am not understanding, Thank You for the help.
An Investor in the united states bought a one-year Brazilian security valued at $195,000 Brazilian reals. The U.S Dollar equivalent was 100,000. The Brazilian security earned 16.00% during the year, but the Brazilian real depreciated 5 cents against the us dollar during the time period ($0.51 to $0.46) After the transfer of funds back to the united states, what was the investors return on her $100,000? Determine the total ending value of the Brazilian investment in Brazilian reals and then translate this Brazilian value to us dollars. Then compute the return on the $100,000.
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