I don't quiet understand this question. can you please explain the steps 1 Pulau Penang Island Resort.
Question:
I don't quiet understand this question. can you please explain the steps
1 Pulau Penang Island Resort. Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The present charge for a luxury suite plus meals in Malaysian ringgit (RM) is RM1,045/day. The Malaysian ringgit presently trades at RM3.1350/$. She determines that the dollar cost today for a 30-day stay would be $10,000. The hotel informs her that any increase in its room charges will be limited to any increase in the Malaysian cost of living. Malaysian inflation is expected to be 2.75% per annum, while U.S. inflation is expected to be 1.25%.
a.How many dollars might Theresa expect to need one year hence to pay for her 30-day vacation?
b.By what percent will the dollar cost have gone up? Why?
Multinational Business Finance
ISBN: 978-0133879872
14th edition
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett