Problem 1 (5 points) - Calculate the cross rate between the Costa Rican colon (C) and the Canadian dollar (C$) from the following spot rates: C503.29/$ and C$1.02/$

Problem 2 (10 points) - You are planning a 30-day vacation in Bali, Indonesia one year from now. The present charge for a hotel room in Indonesian Rupiah (IDR) is 800,000 IDR/day. The Indonesian Rupiah (IDR) currently trades at IDR16,000/$. You determine that the dollar cost today for a 30-day stay would be $1500. The hotel informs you that any increase in its room charges will be limited to any increase in the Indonesian cost of living. Indonesian inflation is expected to be 2.75% per annum, while U.S. inflation is expected to be 1.25%

a. How many dollars might you expect to need one year hence to pay for your 30-day vacation?

b. By what percent will the dollar cost have gone up?