Solve for A and B please? Question Completion Status: Moving to the next...

80.2K

Verified Solution

Question

Finance

image

Solve for A and B please?

Question Completion Status: Moving to the next question prevents changes to this answer Question 2 of 14 uestion 2 10 points Save On July 13, 2017 the exchange rate between the Brazilian Real and US Dollar was BR3 2141/5 The consensus forecast for Brazil and the US inflation rates for next year is 5 25% and 1.75%, respectively a Calculate the expected spot rate one year from now for the Brazilian Real per one US Dollar (Round the calculated spot rate at the 4th digit after the decimal) (5 points) b. According to the relative version of the purchasing power parity, do you expect the Brazil Real to depreciate or appreciate versus the USD? And by how many percent? (Round the calculated percentage at the 4th digit after the decimal, such as 0 1234%) (5 points) For the toolbar, press ALT+F10 (PC) or ALT FN+F10 (Mac) Arial 3 (12pt) T-E-IE A) exchange rate= BR3.2141/5 inflation rate of brazil-5,25% and for us= 1.75% I spot rate t+1+3.2141 1+0.0525/1+0.017542485 approximate formula= 4.2485-3.2141/3 2141 100=32 18% Type here to search ENG 6:43 PM 120

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students