You are expecting a payment of 350,000PLN six years from now. The risk-free rate of return is four percent in the U.S. and three percent in Poland. The inflation rate is three percent in the U.S. and
Two percent in Poland. Currently, you can buy 291PLN for 100USD. How much will the payment six
Years from now be worth in U.S. dollars?
A) $127,751
B) $138,525
C) $749,511
D) $1,057,269
E) $1,081,158
Correct Answer:
Verified
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