A series of five constant-dollar (or real-dollar) payments (beginning with $5,000 at the end of the first year) are increasing at the rate of 7% per year. Assume that the average general inflation rate is 5% and the market interest rate is 12% during this inflationary period. What is the equivalent present worth of the series? The equivalent present worth is thousand. (Round to one decimal place.)

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Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.