A U.S.-based MNC, invests 5,000,000 Argentine pesos for a one-year period at a nominal interest rate of

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A U.S.-based MNC, invests 5,000,000 Argentine pesos for a one-year period at a

nominal interest rate of 12 percent. The spot rate of the peso is $.049 at the time of the

investment. The spot rate of the peso in one year is $.041. (1) Has the peso appreciated

or depreciated over the 1-year period? (2) what is the dollar amount of the initial

investment? (3) what is the dollar value of the investment after one year?

Posted Date: May 19, 2024 11:05 AM

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A U.S.-based MNC, invests 5,000,000 Argentine pesos for a one-year period at a nominal interest rate of

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