An investor starts with €1 million and converts it to £694,500, which is then invested for one year. In a year the investor has £736,170, which she then converts back to euros at an exchange rate of 0.68 pounds per euro. The annual euro rate of return earned was _____.
A) 7.55%
B) 6.00%
C) 7.45%
D) 8.13%
E) 8.26% [(£736,170/0.68) /€1 million] - 1
Correct Answer:
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