As a U.S.investor,you decide to invest $110,000 in Switzerland.You do so at a starting exchange rate of 1.093 SwFr/$.Your Swiss investment gains 7 percent,and the ending exchange rate is 1.091SwFr/$.What is your total return on this investment?

Question

Quizplus · Accepted Answer

$100,000 × 1.093Swfr = 120,230 SwFr
120,230 SwFr × 1.07 = 128,646.10
128,646.10 SwFr / 1.091 = $117,915.77
($117,915.77 − 110,000) / 110,000 = 7.20%

As a USInvestor,you Decide to Invest $110,000 in Switzerland