What impact does the new rate have on the amount of pounds

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A U.S. exporter sell $1 million worth of goods to a English importer in May. The export sales contract is drawn up in dollars at the May spot rate of £1=$1.750. Payment (in dollars) is to be made six months after the date of the contract, when the goods arrive in the United Kingdom. At the end of the 6 months, the pound has depreciated by to a rate of £1=$1.745. What impact does the new rate have on the amount of pounds required to complete transaction?

Reference no: EM13183327

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