You are expecting a payment of 350,000PLN six years from now. The risk-free rate of return is four % in the U.S. and three % in Poland. The inflation rate is three % in the U.S. and two % 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:
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