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    Foreign Exchange Rates: Ecuadorian Sucre

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    The Ecuadorian Sucre is trading for $0.000425 today and you are redeeming an Ecuadorian one-year bill that you purchased one year ago when the Sucre was at $0.0005. Calculate the U.S. dollar rate of return on this Ecuadorian one-year bill if you purchased it for 8,000,000 Sucre and will redeem it for 10,000,000 Sucre. What was the return to an Ecuadorian investor?

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    https://brainmass.com/economics/exchange-rates/foreign-exchange-rates-ecuadorian-sucre-21116

    Solution Preview

    Please see attached file.

    The Ecuadorian Sucre is trading for $0.000425 today and you are redeeming an
    Ecuadorian one-year bill that you purchased one year ago ...

    Solution Summary

    The solution calculates the U.S. dollar rate of return on the Ecuadorian one-year bill.

    $2.19