Business, 15.04.2020 02:06 angie249

Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 370,000 reals in Brazil worth 300,000 dollars. It drew 11 percent interest, but the Brazilian real declined 21 percent against the dollar.

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

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