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4. Suppose the spot Yuan/dollar exchange rate is 6.79. Sue, a Chinese national, has 10,000 Yuan that she wants to invest in a U.S. asset that promises an annual interest of 7 percent. If the expected exchange
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4. Suppose the spot Yuan/dollar exchange rate is 6.79. Sue, a Chinese national, has 10,000 Yuan that she wants to invest in a U.S. asset that promises an annual interest of 7 percent. If the expected exchange rate (Yuan/dollar) after a year is 7.2, how much will Sue earn in Yuan

User Achref
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Answer:

Spot exchange rate (Yaun / Dollar) = 6.79 > Therefore, exchanging Yuan for Dollar: 10,000 Yuan.

Step-by-step explanation:

Yuan/Dollar existing exchange rate is 6.79 Sue has 10,000 Yuan which is converted to 10,000 / 6.79

User Jack Love
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