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subsidiary wants to raise $US 1 million by issuing a bond denominated in Pakistani rupees (PKR). The current exchange rate of the rupee is $.02. How many PKR does the MNC need to obtain the $US 1 million needed

Respuesta :

Answer:

50,000,000  PKR

Explanation:

The amount needed in this case is the Pakistani rupees (PKR) equivalent of $US 1 million using the current exchange rate of $.02 to 1 Pakistani rupees (PKR) as computed thus:

Amount needed in Pakistani rupees (PKR)=funds required in USD/exchange rate

funds required in USD=$US 1 million

exchange rate= $.02/1 Pakistani rupees (PKR)

Amount needed in Pakistani rupees (PKR)=$1,000,000/ $.02

Amount needed in Pakistani rupees (PKR)=50,000,000  PKR

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