Ipter $18$

Question $5,$ P$18-15($similar

to$)$

HW Score: $35\mathrm{.}71\%,2\mathrm{.}5$ of $7$

points

Points: $0$ of $1$

Transaction exposure. International Products, Inc. has ordered $20,000$ leather coats from Argentina for delivery in $3$ months. The contracted cost of a coat is $127$ pesos. International Products will pay for the coats upon delivery. The current indirect exchange rate is $$1$ for $1\mathrm{.}1914$ pesos. The anticipated inflation rate is $3\mathrm{.}4\%$ in the United States and $7\mathrm{.}5\%$ in Argentina. In U$.$S$.$ dollars, how much will the $20,000$ leather coats cost International Products at delivery?

In U$.$S$.$ dollars, how much will the $20,000$ leather coats cost International Products at delivery?

$($Round to the nearest cent.$)$