Problem
Suppose that at the start of 2001, a U.S. investor put $10,000 into a one-year euro investment. If the exchange rate was 1.5 euros per dollar, how much would $10,000 be in euros? Over the course of the year, the euro investment paid 10 percent interest. But when the investor switched back to dollars at the end of the year, the exchange rate was 2 euros per dollar. Did the change in the exchange rate earn the investor more money or less money? How much? How does your analysis change if the exchange rate had fallen to 1 euro per dollar?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.