(Solution Download) The pound and the euro are the currencies


The pound (£) and the euro (?) are the currencies of England and Germany respectively. On January 1, 2007 a German investor withdrew ?10,000 from his account and bought British pounds which he then deposited in a London account that earns 7 percent per annum (simple interest, payable annually). On January 1, 2008 he withdrew all the pounds that had accumulated and converted them back to German euros. How many euros did he receive? The relevant exchange rates are:
Jan. 1, 2007 ? 0.72/£
Jan. 1, 2008 ? 0.68/£

 







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