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. An American firm made an investment of 1,000,000 rubles in Russian security for three months. Suppose the current exchange rate for the Russian ruble is 34.50 RUB/$ but is projected to decline in value by 2 percent by the end of the three month period. If the investment earns 5% during the period, how much profit (return) in US dollars will the investment provide?

Microeconomics, Economics

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