You are expecting a payment of 500,000PLN 3 years from now. The risk-free rate of return is 4 percent in Canada and 2 percent in Poland. The inflation rate is 4 percent in Canada and 1 percent
In Poland. Currently, you can buy 380PLN for $100. How much will the payment 3 years from now
Be worth in dollars?
A) $138,700
B) $138,900
C) $139,800
D) $142,300
E) $144,169
Correct Answer:
Verified
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