Driscoll international keeps local currency bank accounts


Driscoll International keeps local currency bank accounts in the dozens of different countries in which it operates. Assume that the Argentine account with a balance of 221,643.49 pesos is worth $40,000. The company earned 14% interest on the account, but the Argentine peso declined against the dollar by 10%. Find (1) the value of Driscoll’s holdings in US dollars at year end; (2) the value of Driscoll’s holdings in US collars if the interest earned was 8% and the peso went up 16% against the dollar.

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Financial Management: Driscoll international keeps local currency bank accounts
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