Homework Answers
12) Value in MXP = 250 x 20.8 = 5,200 MXP
A year later, value = 5,200 x 1.04 = 5,408 MXP
Value in USD = 5,408 / 21.3 = USD 253.90
% Rate = 253.90 / 250 - 1 = 1.56%
13) If Rate = 20.3, a year later value in USD = 5,408 / 20.3 = 266.40
=> % Rate = 266.40 / 250 - 1 = 6.56%
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