Question

Orbital Communications has operating plants in over 100 countries. It also keeps funds for transaction purposes in many foreigh countries. Assume tha tin 2010 it held 100,000 kronas in Norway worth $35,000. The funds drew 12 percent interest, and the krona increased 6 percent against the dollar. What was the value of the holdings based on U.S. dollars, at year-end?

Answer 1

Orbital Communications has operating plants in over 100 countries. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 150,000 Kronas in Norway worth $40,000. The funds drew 13 percent interest, and the krona increased 6 percent against the dollar.
What is the value of the holdings, based on U.S. dollars, at year-end?
(Hint: Multiply $40,000 times 1.13 and then multiply the resulting value by 106 percent)

Answer 2

47,912