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:

Post-Traumatic Stress Disorder

A mental health condition triggered by a terrifying event, leading to symptoms such as flashbacks, severe anxiety, and uncontrollable thoughts about the event.

Trauma

Emotional or physical injury or distress resulting from an extreme or distressing event or series of events.

Mental Scars

Emotional or psychological trauma resulting from distressing events, leading to long-lasting effects on an individual's mental health.

Universal Design

A design philosophy aiming to create products, environments, and systems that are accessible and usable by all people, regardless of age, disability, or other factors.