Your $785,000 investment in Mexico gained 6 percent.If the exchange rate moves from 13.4 pesos per dollar to 12.5 per dollar over the period,what is your total return on this investment?

Question

Quizplus · Accepted Answer

$785,000 × 13.40 pesos = 10,519,000 pesos
10,519,000 Pesos × 1.06 = 11,150,140 pesos
11,150,140 / 12.50 pesos / USD = $892,011.20
($892,011.20 - 785,000) / 785,000 = 13.63%

Your $785,000 Investment in Mexico Gained 6 Percent