If the Price of Gold Went from U$850 to U$1,400

question 237

True/False

If the price of gold went from U$850 to U$1,400 and the exchange rate goes from $0.9721 per C$ to $0.9823 per C$, then there will be a net gain of C$550.83.

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Definitions:

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a quarterly basis.

Amortization Period

The total length of time over which equal regular payments will repay a loan.

Equal Payments

Regular payments of the same amount over the term of a loan or mortgage.

Compounded Semi-Annually

The process wherein the interest earned on an investment is added to the principal balance twice a year, resulting in compound growth.