Kayla invested $3,000 and purchased shares of a German corporation when the exchange rate was $1.00 = .91 euro.After six months, she sold all of the shares for 3,180 euros, when the exchange rate was $1.00 = .88 euro.No dividends were paid during the time Heidi owned the shares of stock.What is the amount of Kayla's gain or loss on this investment?

Question

Quizplus · Accepted Answer

To find out the amount of gain or loss on this investment, we need to convert the euros back to dollars using the exchange rate at the time of the sale:

3,180 euros * $1.00/.88 euros = $3,613.64

Next, we need to subtract the initial investment:

$3,613.64 - $3,000 = $613.64

Since the final result is positive, Kayla made a gain of $613.64 on this investment. Therefore, the answer is B) $613.64 gain.

Kayla Invested $3,000 and Purchased Shares of a German Corporation