Question

Amara Patel Part​ 1:  Amara Patel has saved​ 1,000,000 Indian Rupees​ (INR) to invest in the U.S. stock market. Amara has decided to invest all of her savings in shares of Fabulous Machine​ Company, a​ dividend-paying U.S. manufacturing corporation. She can purchase shares at a price of​ $27.44 per share. The current spot rate is​ $0.013876 USD per INR.  

If Amara converts her​ 1,000,000 INR to USD at the current spot rate of​ $0.013876 USD per​ INR, and uses the proceeds to buy shares of Fabulous at​ $27.44, how many shares will she own​ (round answer to two decimal​ places)?  

A.494.25

B.500.00

C. 503.00

D. 505.70

Amara Patel Part 2​:

Use the number of shares you calculated in​ "Amara Patel Part​ 1". At the end of the​ year, the price of Fabulous shares has risen to​ $28.25 per share. If the USD to INR exchange rate is now​ $0.013925 per​ INR, what will be​ Amara’s proceeds in INR from selling her shares of stock and converting the USD to​ INR? ​ (Note: "proceeds" means the total final amount of the investment in​ INR, not just the​ profits.)

A. ​1,025,926.39

B. 1,205,706.99

C. ​1,100,008.45

D. ​990,357.22

Answer 1

Answer: Option (D) 505.70

(Explanation:-

Answer:- Option (A) ​1,025,926.39

(Explanation:-