Question
You have $500 CDN to invest for one year in either a CDN bank or a German Bank using the following data show all calculations
You have $500 CDN to invest for one year in either a CDN bank or a German Bank using the following data show all calculations and answer the following questions. Exchange rates CDN /Euro today (0.6928) One year forward (0.6950). What is the best investment?
Interest rate Canada 6% per annum
Interest Rate Germany 4% per annum
- 1.What is the return on CDN Bank
- 2.What is the return on German Bank
Step by Step Solution
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The return on the CDN Bank investment can be calculated using simple interest formula Return Princip...
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
