Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 420,000 reals in Brazil worth 350,000 dollars. It drew 9 percent interest, but the Brazilian real declined 18 percent against the dollar. What is the value of its holdings, based on U.S. dollars, at year-end? Note: Do not round intermediate calculations.   What is the value of its holdings, based on U.S. dollars, at year-end if instead it drew 6 percent interest and the real went up by 10 percent against the dollar? Note: Do not round intermediate calculations.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 420,000 reals in Brazil worth 350,000 dollars. It drew 9 percent interest, but the Brazilian real declined 18 percent against the dollar.

  1. What is the value of its holdings, based on U.S. dollars, at year-end?

    Note: Do not round intermediate calculations.

     
  2. What is the value of its holdings, based on U.S. dollars, at year-end if instead it drew 6 percent interest and the real went up by 10 percent against the dollar?

    Note: Do not round intermediate calculations.

     
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