You have $500 CDN to invest for one year in either a CDN bank or a German Bank using the following data show all calculations and answer the following questions. Exchange rates CDN /Euro today (0.6928) One year forward (0.6950). What is the best investment?

Interest rate Canada 6% per annum

Interest Rate Germany 4% per annum

1. 1.What is the return on CDN Bank
2. 2.What is the return on German Bank 

Answer rating: 100% (QA)

The return on the CDN Bank investment can be calculated using simple interest formula Return Princip... View the full answer