Answer

13:39 Wed Dec 4 . . . - 77% O AA learn.hawkeslearning.com + X Assignment Exam 3 Question 27 of 40 Step 1 of 1 | Hawkes Learning | Portal Chat Thread Submit Assignment Exam 3 DANIEL WILLIAMS Question 27 of 40 Step 1 of 1 01:24:37 Suppose that in 2015, a Brazilian bank borrowed 800 million in U.S. dollars (USD) at a 5 % interest rate, converted it to Brazilian reals (BRL), and then lent the money at a 6 % interest rate. Assume that the exchange rate in 2015 was BRL 3.97 = USD 1, and the following year the real appreciated by BRL 0.70 = USD 1. Calculate the profit or loss of the Brazilian bank if the debt must be repaid to the U.S. bank in 2016 (one year after the money was borrowed). Enter your answer in millions and as a positive number to indicate a profit or as a negative number to indicate a loss. If necessary, round any intermediate calculations to two decimal places, and round your final answer to two decimal places. Answer 2.5 Points Keypad Keyboard Shortcuts