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

question 58

Multiple Choice

You are expecting a payment of C$100,000 four years from now. The risk-free rate of return is 3 percent in the U.S. and 4 percent in Canada. The inflation rate is 3 percent in the U.S. and 2 percent in Canada. The current exchange rate is C$1 = $.72. How much will the payment four years from now be worth in U.S. dollars?

• A) $68,887
• B) $69,191
• C) $69,300
• D) $72,222
• E) $74,953

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Definitions:

American Population

Refers to the total number of people living in the United States of America at any given time.

American Schoolchildren

Refers to students attending elementary, middle, or high schools in the United States.

Interracial Facial Identifications

The process of recognizing and distinguishing faces of individuals from different racial backgrounds.

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple administrations or observations.