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Malaysian 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 $10,000.00. 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 2.7% annum, while U.S. inflation is expected to be 1.202%. 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?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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