Question

Suppose it takes 1.82 U.S. dollars today to purchase one British pound in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12.0% against the pound over the next 30 days. How many dollars will a pound buy in 30 days

Answer 1

$2.0384

Step-by-step explanation:

Calculation for how many dollars will a pound buy in 30 days

How many dollars will a pound buy =1.82 x (1+0.12)

How many dollars will a pound buy=1.82× 1.12

How many dollars will a pound buy= $2.0384

Therefore the amount of dollars that a pound will buy in 30 days will be $2.0384