What will be the value of investment

Assignment Help Finance Basics
Reference no: EM132234759

Assume you invest $5,000 in a one-year Mexican CD that pays 1% interest. At the time of your purchase, 85 Pesos equals $1 while one year later, 80 Pesos equals $1. What will be the value of your investment in one year when measured in dollars?

Reference no: EM132234759

Questions Cloud

Fabricator produces shot gun barrels with outer diameter : A metal fabricator produces shot gun barrels with an outer diameter that has a 3.5 ± 0.05 inch specification. Calculate the process capability index.
Doug heffernan is considering purchasing a bond : If the YTM on this bond is 7.50 percent, how much should Doug pay for this bond if she purchases the bond today?
Riskiness of the stock decreases : Suppose the riskiness of the stock decreases, which causes the required rate of return to fall to 13 percent. Under these conditions, I need the stock's value.
Determine the optimal order quantity for skateboard : What is the inventory holding cost per unit skateboard per month? Determine the optimal order quantity for skateboard.
What will be the value of investment : What will be the value of your investment in one year when measured in dollars?
What is meant by respondeat superior : What is meant by “respondeat superior” and how and when does it apply in the law of agency?
Electronic human resource management applications : Which of the following is true of electronic human resource management (e-HRM) applications? Cost-efficient supply chains...
Calculate chelsea debt payment-to-disposable income : (a) Calculate Chelsea's debt payment-to-disposable income and debt-service-to-income ratios.
Option premium and an option price : What is the difference between an option premium and an option price?

Reviews

Write a Review

Finance Basics Questions & Answers

  Analysis of risk and break-even analysis

Analysis of Risk: risk analysis (business, financial, leverage), break-even analysis, results of sensitivity analysis (determine key value drivers) - The end result will be a nutrition bar of several variations that break into snack sized pieces y..

  Distinguish the deontological and utilitarian ethical

First, distinguish the deontological and utilitarian ethical points of view, describing how they are different from each other and explaining their key characteristics. Then analyze how these two ethical positions would consider the above scena..

  What is the current ratio

Teri's Photography has total assets of $50,800, fixed assets of $47,400, long-term debt of $36,300, and total debt of $42,900. If inventory is $1,200

  Worried about the credit worthiness of borrowers

Banks were not worried about the credit worthiness of borrowers, if they couldn't pay the money they were just selling the mortgages into the secondary market. Loans were given to person who were not even qualified. As a result to which there were..

  Construct a portfolio of assets to cover series

Your company wishes to construct a portfolio of assets to cover this series of liabilities, such that it is immunized against interest rate risk right now.

  Construct the postmerger balance sheet now

Construct the postmerger balance sheet now, assuming that the purchase method of accounting is used.

  What is the duration gap for this bank

Assume a bank has $200 million of assets with a duration of 2.5, and $190 million of liabilities with a duration of 1.05. What is the duration gap for this bank?

  Four functions of management

Assess how the overall management team performed in terms of the four functions of management, which are as follows:

  Discuss about the ggm of reit share valuation

What is your reaction to the contents of the text box ‘‘REIT Valuation: The NAV Debate''? Carefully evaluate the arguments put forward by proponents.

  Compute the increased retained earnings for 2003

Compute the increased retained earnings for 2003 if the company were to declare a $4.25 common stock dividend. The company has 15,000 shares of common stock outstanding.

  Relationship between variables in loan amortization

What is the relationship between the variables in a loan amortization and the total interest cost?

  Which plant should the company choose

Whichever plant is chosen, it will not be replaced when it wears out. If the tax rate is 34% and the discount rate is 11%, which plant should the company choose?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd