You Are Expecting a Payment of C$60,000 Three Years from Now

question 131

Multiple Choice

You are expecting a payment of C$60,000 three years from now. The risk-free rate of return is 4.3 percent in the U.S. and 4.8 percent in Canada. The inflation rate is 3.7 percent in the U.S. and 4.1
Percent in Canada. Suppose the current exchange rate is C$1 = $.9489. How much will the payment
Three years from now be worth in U.S. dollars?

• A) $28,887
• B) $30,132
• C) $52,603
• D) $56,088
• E) $70,516

---

Definitions:

Symbolic Ethnicity

An ethnic identity that is relevant only on specific occasions and does not significantly affect everyday life.

Fourth-generation

In the context of technology, refers to the fourth iteration or version of a product or system, often highlighting significant advancements or changes from previous versions.

Mexican American

A term referring to Americans of Mexican descent, encompassing a diverse community with a rich cultural heritage and significant contributions to American society.

Symbolic Ethnicity

The way in which individuals express their ethnicity on certain occasions or in specific contexts without it having a significant impact on their daily lives.