You obtain the following informaiton about Japanese Yen (Note that Japanese Yen

Question

You obtain the following informaiton about Japanese Yen (Note that Japanese Yen is quoted as Yen per U.S. Dollar). Aug. 2012: 78.6909 Aug. 2014: 102.9438 What is the percentage change in the value of Japanese Yen from Aug. 2012 to Aug. 2014 ? (Note: you will need direct quotation to apply the formula of percentage change in currency value; you don't need to annulize the rate; find the closest answer since different rounding practice may give you different but very close answers) A. -30.82% B. -23.51% C. -20.89% D. 30.82%

Explanation / Answer

In Aug 2012,

¥ 78.6909 = $ 1[As per direct quote fixed unit of $ and variable unit of Yen have been considered]

1 ¥ = 1/78.6909 = 0.01270795 $

In Aug 2014,

¥ 102.9438 = $ 1

1 ¥ = 1/102.9438 = 0.009714038 $

Chang in value = (Final value – Initial value)/Initial value

                          = (0.009714038 - 0.01270795)/ 0.01270795

                          = - 0.002993912/0.01270795 = - 0.235593596 or – 23.56 %

Hence option “B. $ -23.51 %” is correct answer.

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