What is the real value of that payble in six months


Problem

An Australian firm has a USD 111 payable in six months time. The current spot rate is USD/AUD 1.1. The sport rate in six months is VAD/AUD = 1.15. Inflation in Australia is 6% and inflation in the US is 5%. What is the real value of that payble in six months?

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Microeconomics: What is the real value of that payble in six months
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