Answer questions 3?5 using the U.S. Dollar exchange rate information from March 30, 2016 and March 30, 2018 that we used in class. Be sure to use the correct table for each year. In terms of rounding, use four (4) decimal places for the exchange rates, and use zero (0) decimal places for answers measured in U.S. Dollars or any foreign currency.

3. (8 points) Did the Colombian Peso appreciate or depreciate against the U.S. Dollar from March 30, 2016 to March 30, 2018? How do you know?

4. (8 points) Assume the only factor influencing the U.S. Dollar/British Pound exchange rate is a change in the difference in interest rates (or rates of return) between the United States and Great Britain. Based on the information in the exchange rate tables, what can you say about how interest rates (or rates of return) must have changed in the United States and Great Britain from March 30, 2016 to March 30, 2018? Support your answer.

5. (12 points parts A and B)

5A. (4 points) Assume an Egyptian student enrolled at UIC in Spring, 2018 and paid for their entire tuition on March 30, 2018. The undergraduate tuition schedule for Spring 2018 shows the 4-year guaranteed out-of-state tuition per semester for 12 or more credit hours is $11,720. How much would the 4-year (i.e. 8 semesters) tuition be in terms of Egyptian Pounds based on the March 30, 2018 exchange rate between the Egyptian Pound and the U.S. Dollar (assume the entire tuition was paid on March 30, 2018)? Show your work.

5B. (8 points) The undergraduate tuition schedule for Spring 2016 shows the 4-year guaranteed out-of-state tuition per semester for 12 or more credit hours was also $11,720. Do you think that the change in the U.S. Dollar/Egyptian Pound exchange rate since March 30, 2016 would have encouraged or discouraged students from Egypt from attending college in the U.S. in Spring 2018? Why? Provide support for your answer by calculating the 4-year (i.e. 8 semesters) tuition in Egyptian Pounds for a student that started in the Spring 2016 semester at UIC (assume the entire tuition was paid on March 30, 2016). Show your work.

XE Currency Table: USD

2016-03-30

Currency code Currency name Units per USD USD per Unit

GBP British Pound 0.6949940902 1.4388611559

COP Columbian Peso 3043.6025126208 0.0003285580

EGP Egyptian Pound 8.8804238220 0.1126072381

XE Currency Table: USD

2018-03-30

Currency code Currency name Units per USD USD per Unit

GBP British Pound 0.7130362376 1.4024532657

COP Columbian Peso 2789.7962510639 0.0003584491

EGP Egyptian Pound 17.6444629110 0.0566750037