You Are Expecting a Payment of C$100,000 Two Years from Now

question 3

Multiple Choice

You are expecting a payment of C$100,000 two years from now. The risk-free rate of return is 3.8 percent in the U.S. and 4.1 percent in Canada. The inflation rate is 2 percent in the U.S. and 3 percent in Canada. Suppose the current exchange rate is C$1 = $.9132. How much will the payment two years from now be worth in U.S. dollars?

• A) $91,870
• B) $102,414
• C) $108,851
• D) $88,202
• E) $90,775

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Definitions:

Dissociation

A psychological experience in which a person feels disconnected from their thoughts, feelings, memories, or sense of identity.

Synesthesia

A condition where one sense is simultaneously perceived by one or more additional senses, such as seeing colors when hearing music.

Biopsychosocial Approach

An integrative perspective that considers biological, psychological, and social factors in understanding health and illness.

Central Nervous System

The complex of nerve tissues that controls the activities of the body, comprising the brain and the spinal cord.