Early in September 1983. It took 265 Japanese yen to equal $1. Nearly 28 years l

Question

Early in September 1983. It took 265 Japanese yen to equal $1. Nearly 28 years later, in August 2011, that exchange rate had fallen to 116 yen to $ 1. Assume that the price of a Japanese-manufactured automobile was $10,500 in September 1983 and that its price changes were in direct relation to exchange rates. Has the price, in dollars, of the automobile increased or decreased during the 25 year period because of change in the exchange rate? What would the dollar price of the automobile be in August 2011, again assuming that the car's price changes only with exchange rates? Round your answer to the nearest cent.

Explanation / Answer

Price in dollar has increased as dollar has depreciated vis a vis the yen

Price in dollar now = 10500*265/116 = 23987.07

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.