Suppose a U $\$ 1.00 = \mathrm { NKr } 7.0$

Multiple Choice

Suppose a U.S. citizen purchases a one-year Norwegian bond that yields 10 percent interest. Between the purchase date and the maturity date, the exchange rate changes from $\$ 1.00 = \mathrm { NKr } 7.0$ to $\$ 1.00 = \mathrm { Nkr6 } .3$ How much was initially invested in the bond if the dollar value of the proceeds at maturity is $3,500? (roundoff up to the nearest whole number)

A) $2,916
B) $3,150
C) $3,500
D) $3,850
E) $4,200