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How many dollars might Theresa expect

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Question - 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 RM1,049?/day. The Malaysian ringgit presently trades at RM3.1350?/$. She determines that the dollar cost today for a? 30-day stay would be ?$10,038.28. 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 2.7926?% ?annum, while U.S. inflation is expected to be 1.21?%.

How many dollars might Theresa expect to need one year hence to pay for her? 30-day vacation?

By what percent will the dollar cost have gone? up? Why?

Reference no: EM133010729

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