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?

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?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter3: International Financial Markets

Section: Chapter Questions

Problem 2BIC

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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. a) What is the calue of holdings , based on U.S. dollars, at the year end?
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