Assume today you can exchange $100 for either Can$128 or Ps1,892. Also assume that last year, $100 was worth Can$126 or Ps1,847. Which one of the following statements is correct given this information?
A) $100 invested in Canadian dollars last year would now be worth Ps1,824.09.
B) $100 invested in Mexican pesos last year would now be worth $98.47.
C) $100 invested in Mexican pesos last year would now be worth $101.63.
D) $100 invested in Canadian dollars last year would now be worth $99.52.
E) $100 invested in Canadian dollars last year would now be worth Ps1,862.44.
E) $100 invested in Canadian dollars last year would now be worth Ps1,862.44.
Explanation: Current value in Ps of $100 exchanged to Can$ last year = $100(Can$126/$100)($100/Can$128)(Ps1,892/$100)
Current value in Ps of $100 exchanged to Can$ last year = Ps1,862.44
Current value in dollars of $100 exchanged to Ps last year = $100(Ps1,847/$100)($100/Ps1,892)
Current value in dollars of $100 exchanged to Ps last year = $97.62
Current value in dollars of $100 exchanged to Can$ last year = $100(Can$126/$100)($100/Can$128)
Current value in dollars of $100 exchanged to Can$ last year = $98.44
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