Postal Express has outlets throught the world. It also keeps funds for transactions purposes in many foreign countries. Assume that in 2010 it help 200,000 reals in Brazil worth 130,000 dollars. It drew 10 percent interest , but the Brazilian real declined 20 percent aganist the dollar.  B) What is the value of its holdings , based on U.S. dollars , at year-end if instead it drew 8 percent interest and the real went up by 12 percent aganist the dollar?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
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Chapter22: International Financial Management
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Postal Express has outlets throught the world. It also keeps funds for transactions purposes in many foreign countries. Assume that in 2010 it help 200,000 reals in Brazil worth 130,000 dollars. It drew 10 percent interest , but the Brazilian real declined 20 percent aganist the dollar. 

B) What is the value of its holdings , based on U.S. dollars , at year-end if instead it drew 8 percent interest and the real went up by 12 percent aganist the dollar? 

 

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