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    Total Ending Value and Return on Investment

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    An investor in the US bought a one year New Zealand security valuing 195,000 New Zealand dollars. The US dollar equivalent was $100,000. The New Zealand security earn 16% during the year, but the New Zealand dollar depreciated 5 cents against the US dollar during the time period (.51/NZD to .46/NZD).

    After transferring the funds back to the US, what was the investor's return on her $100,000? Determine the total ending value of the New Zealand investment in New Zealand dollars and then translate this value to US dollars. Then compute the return on the $100,000.

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    This solution provides calculations for total ending value and return on investment.

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