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What is the value of the asset at the end

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Suppose a U.S. financial institution invests $10,000,000 in a pound denominated deposit that pays an annual interest rate of 7.25% at the beginning of the year when the exchange rate is 1.3555 £/$. At the end of the year, the financial institution withdrawals their money and converts it back to dollars. The exchange rate is 1.4055 £/$. How many pounds were originally deposited into the account? What is the value of the asset at the end of the year in dollars?

Reference no: EM132813632

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