Today’s rate for the USD/MXN is 21.72. Mexico’s 1-year interest rate is 6.0%. US 1-year interest rate is 3.0%. What is the forecast for the pair for next year? (Format for answer: XX.XX)
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Today’s rate for the USD/MXN is 21.72. Mexico’s 1-year interest rate is 6.0%. US 1-year interest rate is 3.0%. What is the
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- What is the growth in year 2009 currency of 7,400 paid for an item in 2009 that now in 2020 costs 10,200 given the baseline index in 2009 was 218.5 and the equivalent index in 2020 is 256.5?Given the following data: E = ¥110 = $1.00 E+1 = ¥110 = $1.00 {one year later} İJapan = 5% annually İus. = 5% annually Calculate the future value of a $1,000 investment. If the $1000 is invested in the U.S., the future value is S (Round your response to two decimal places.)Calculate the net present value in year 0, of the next series of payments. Suppose that i = 10% per year.
- Over the last 10 years, the average rate of inflation has been 1.61%. what is the purchasing power of a dollar today in terms of what a dollar could purchase in 2008?Calculate the value of getting 1 000 000 EURO today and an alternative of getting 1 200 000 EURO in three years if you know that the possible nominal interest rate is 5% if: a) There is no taxation and no inflation. b) Inflation each year is 3% and no taxes. c) Inflation is 2% each year and a tax rate of 30% on interest flows applies. d) What is the difference between relative prices and MRS. e) What is the difference between cardinal and ordinal values of utility? Show each stepSuppose you have an initial cash of $10000 and deposit it into a bank with a one year interest rate of 5%. What will be the value of your deposits 3 years from now? (If necessary, round to two decimal places). Suppose you have an initial cash of $5000 and deposit it into a bank with a one year interest rate of 7%. What will be the value of your deposits 4 years from now? (If necessary, round to two decimal places). Suppose you have an initial cash of $5000 and deposit it into a bank with a one year interest rate of 7%. What will be the value of your deposits 4 years from now? (If necessary, round to two decimal places).
- Given the following data: E₁ =¥100 = $1.00 Et+1 = ¥100 = $1.00 (one year later} iuaoan = 15% annually ¡u.s. = 10% annually Calculate the future value of a $1,000 investment. If the $1000 is invested in the U.S., the future value is $ (Round your response to two decimal places.)A South American country has had a high rate of inflation. Recently, its exchange rate was 15 cruzados per dollar; that is, one dollar will buy 15 cruzados. It is likely that the country will continue to experience a 25% inflation rate and that the U.S. will continue at a 3% inflation rate. Assume that the exchange rate will vary the same as the inflation. In this situation, one dollar will buy how many cruzados 5 years from now?What is the value of year 4's output in nominal dollars?
- The USA interest rate is 5% and the nominal exchange rate between the euro and the US dollar, E€/$, is 0.94. As the Ukraine crisis continues and the price of energy is expected to increase further, the financial markets expect a 14% depreciation of the euro in the following year. How much (euro) will a European investor earn, if today she invests 1 euro in a one-year USA bond?nflation causes things to cost more, and for our money to buy less (hence your grandparents saying "In my day, you could buy a cup of coffee for a nickel"). Suppose inflation decreases the value of money by 5% each year. In other words, if you have $1 this year, next year it will only buy you $0.95 worth of stuff. How much will $100 buy you in 20 years?$What is the cross rate between Taiwan Dollar (TWD) and the Denmark Krone (DMK) if the following rates are observed: Country US equivalent Currency per USD Taiwan 0.03089 32.373 Denmark 0.1933 5.1733