Economics

Congratulations , you just won the Irish Lottery ! You bought a ticket while you were on vacation in Ireland , and your profit amount to ? 1 million (Euros ) after all taxes were taken out1 . If the current change over rank is US 1 equals .70 , how ofttimes did you win in US dollarsIf the metamorphose rate is US 1 .0 ? 0 .70Then ? 1 million (1000000 /0 .7 1 .0 US Dollars US 1 ,428 ,571 .432 . Suppose that the interest rate in Irish banks is 2 for a one category br CD . In the USA , the rate is 4 for a one year CD . If you left your profits in Ireland , how many Euros would you sire in a yearAt the finale of year one ? 1 million will have grown to :-1000000 (1 .02 ) ^1 ? 1 ,020 ,000 .

00If you had taken your winnings plump for to the USA , how many dollars would you haveHad the winnings been brought back to the USAThen given that the exchange rate at the time of the winning translated to US 1 ,428 ,571 .43We therefore find the one year yield on this amount at a rate of 4This gives us US 1 ,428 ,571 .43 (1 .04^1 US 1 ,485 ,714 .29when you cashed in your CD in Ireland a year from now , the exchange rate had changed from US 1 to .70 to US 1 to .65 . How oft would your Irish bank account...If you want to get a beat essay, order it on our website: Ordercustompaper.com

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