What should be the price of the same ipad air in brazil

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Reference no: EM132061893

1. In the spot market, 2.58 Brazilian real can be exchanged for 1 U.S. dollar. An Apple iPad Air costs $550 in the United States. If purchasing power parity (PPP) holds, what should be the price of the same iPad Air in Brazil? Round your answer to the nearest whole number. Do not round intermediate calculations.

2. An investment will offer $571 per year forever, starting 4 years from today. If the relevant interest rate is 14% per year (as an EAR), what is the value of the investment today?

Reference no: EM132061893

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