Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 398 Weeks Ago, 2 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Economics Posted 29 May 2018 My Price 7.00

dollar rate of return

Suppose that on January 1, 2018 you have $8,000 which you wish to hold in an interest-bearing deposit for one year. One of your choices is to exchange $8,000 for euros at the current exchange rate of E$/€ = 1.60 and hold the proceeds of that exchange as a euro deposit earning interest at an annual rate of R€ = 0.01 (or 1%). Then on January 1, 2019 you plan to convert that euro deposit (principal plus interest) back into dollars at an expected exchange rate of Ee$/€ = 1.64. 

a) Fill in the blanks in the following statements to compute the expected dollar rate of return on the euro deposit:

i) Conversion of $8,000 into euros on January 1, 2018 yields € ____________

ii) By January 1, 2019 the value of your deposit has increased to € _____­­­_____

iii) On January 1, 2019 the expected $ value of your deposit is $ ___________  

iv) The expected dollar rate of return on holding a euro deposit from January 1, 2018 to January 1, 2019, (stated in decimal form to 4 decimal places) is __________

 

b) In the space below show that the sum of the euro interest rate and the expected rate of appreciation of the euro in terms of the dollar is approximately equal to the value of expected dollar rate of return on the euro deposit which you calculated in answer to part iv) above.         

Answers

Maurice Tutor
(5)
Status NEW Posted 29 May 2018 08:05 PM My Price 7.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e-----------

Not Rated(0)