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How many reals will need to buy a dollar in four years

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Question 1: The Brazilian inflation rate is expected to be 30% per year for the next 4 years. The U.S. inflation rate is expected to be 3% per year over the same period. A Brazilian real currently costs 87.36 cents. Assuming RPPP holds, how many reals will you need to buy a dollar in four years?

A. 11.447.

B. 2.905.

C. 2.862.

D. 1.676.

Reference no: EM132578391

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