How much wealthier would you be 1 year from now if you exchange $100,000 into Hong Kong dollars today at an indirect rate of HK$7.8/$, earn 7% on your Hong Kong investment, and exchange back at a rate of HK$8.0/$, as compared to investing in the United States at 4.0%?
A) -$2,600
B) $325
C) $2,000
D) $5,744
Correct Answer:
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