I did 4.1268(1+0.467)^4 / (1+0.0164)^4 = 4.64134406 but that wasn't a choice The annual...
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I did 4.1268(1+0.467)^4 / (1+0.0164)^4 = 4.64134406 but that wasn't a choice
The annual inflation rate in the U.S is expected to be 1.64 percent and the annual inflation rate in Poland is expected to be 4.67 percent. The current spot rate between the zloty and dollar is 24.1268/$. Assuming relative purchasing power parity holds, what will the exchange rate be in four years? Multiple Choice 73.6489/$ 23.7629/$ O 24.5134/$ 24.6502/$ 24.3807/$
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I did 4.1268(1+0.467)^4 / (1+0.0164)^4 = 4.64134406 but that wasn't a choice