Question

Please help me to solve these two problems showing all the calculations, no excel please

466-566-P12020(2) - Protected View - Saved to this PC 18109361685 A Share P Comments Mailings P Tell me what you want to do File Draw Design References View Help Home Insert Layout Review Please prepare according to the "Problem Set Guidelines" in the "Course Documents" section, and submit your solutions in the Assignments section of Blackboard by Sunday, January 19 at 11:59 p.m. There is a 3-point per day penalty for late assignments. Show all work (calculations, formulas, calculator keystrokes, steps, etc.) to support each of your final answers, label all numbers with appropriate units, and quote all ex-rates to 4 decimal places with both currencies (e.g., $1.4924/£ or ¥86.2357/$). Please do not reverse/invert any of the ex-rate quotes, use the ex-rates below exactly as given. December 2018 a. $1.3066/£ b. ¥112.9725/$ c. MXN21.0972/$ d. $1.1380/€ December 2019 $1.2369/£ (British pound) ¥108.3380/S (Japanese Yen) MXN19.3193/$ (Mexican peso) $1.1051/€ (Euro) 1. (2 points) Given the ex-rates above, calculate and report the percentage change in the ex-rate over the last year from December 2018 to December 2019 (you can use the %CHG function on your HP-10B calculator); and report the percentage change to two decimal places, e.g. 3.23%, but SHOW ALL WORK). For each currency separately, clearly explain in words (essay) whether the U.S. dollar appreciated or depreciated against each of the four currencies over the last year, using the two ex-rates above for each currency (do not change or reverse the quoted exchange rate). In your answer, please provide details beyond a mechanical explanation like "the ex-rate increased/decreased, so the dollar appreciated (depreciated)," and instead explain why the U.S. dollar depreciated or appreciated over the year, e.g., because it took more or fewer dollars to buy 1 unit of a foreign currency and that's why the dollar appreciated or depreciated, or 1 dollar purchased more or fewer foreign currency units and that explains why the dollar got stronger or weaker. Please show answers separately for each currency (a, b, c, and d), and do not combine answers. 2. (3 points) Use the ex-rate information above for this problem. Do not reverse any of the ex-rate quotes. Show all work. a. Starting with $2 million (M), convert $2M into BPs (£s) at the December 2018 ex-rate, and then convert that amount of BPs back into dollars (USD) at the December 2019 ex-rate. b. Starting with $2M, convert $2M into Yen at the December 2018 ex-rate, and then convert that amount of Yen back into USDS at the December 2019 ex-rate. c. Starting with 2M pesos (MXN), convert MXN2M into USD (S) at the December 2018 ex-rate, and then convert that amount of USDS back into pesos at the December 2019 ex-rate. d. Starting with €2M, convert €2M into USDS ($) at the December 2018 ex-rate, and then convert that amount of USDS back into Euros at the December 2019 ex-rate. 909 words 100% Page 1 of 2 2:26 AM 1/13/2020

Answer 1

Ep-Pate on Pee'ls →£= $13066 on Deel9 > I£ 41.2369 -. Change Ep Pateon Decla Ex.Rate on Decls 5. pale on Dee' e 1. 2369 - 1.3066 T.3066 -5.33-1. Us 4 appreetated. tarlierin Dec'1s we had to pay $1.3O66 to buy 1 pound but now in Dee'ja I# tor $ 1.2369, We can get Cau get exauple more clanty on this by takng Suppese if we want to buy 100f we have to speut ¢130.66 On Dee'1s we needs to spend $1223.69. whereas on Deet9 So it ghows that tor buying I00 E weare Spending les number e dollars in Dee'lg ust Appreciated :- 1: change |08.338O-112.9725 112.9725 -4.10.1. As Ex-Pates are qven in the tormofDirect quote Us$ depreciated:

have to speut In pee 18, For Buying 1$ we +112.9725 but noo ¥108.3380 Buy ¥5000 So. jif fuppose we uut to would be The amouut out floco în Dee'l8 fo. 112.9725 Amomit of outflow in Dedi9 wowld be 5000 |08.3380 = $46.15 It shows As we hare to speud more. that dollar ralue Depreciated 19.3193-21.0972 1.Chauge 21.0972. -8.431. Us$ Depreciated: outflow it we have to Buuy so00 MXN Amount SO00 =$234. 21.0972

Amout q outflow in pec'19 CO00, 19.3193 -$256.80 we are speuding So Dollas value more Depreiated . l lo51-11380 -|.change 1.1380 - 2.891 ..Uc$ rate Appreeiated . : Amouut of outflow inf wehave to Buy E5000 in Dee'1e =so00 X 1.12e0 -45690 Amout of outflow if we have to Buy E SOOD fn Dee' 19 coo0x1.lo51 -#5s25.5 Hence dollar rate 80, we alespeuding Lels. Appreeated.

conve Dec18 Ex.fate It=$1.3066 $20,00,000 ? f1530690 Conversion of BP's into us¢ at Dee'19 exrate $1.2369 cowre £ 1530690 = $1893310 O Conversion of.$ 2M ionto Yen at Bee'le ex pate Com 14 = 12.9725 ex-i (IM-10,000) $2M -) 20larns yi12.9725 20,0 » 42259.45 lakus Conversion of Y into $ at Deci9 ex- Rate - conv 1 4 ¥108.3380 22१.५ arks (-> 208 5556

Conversien of 2M peros (MYNinto at ped l8 ex-pate. 1= MYN 21.0972 20,00,000MXN to $94,711 conversion f Us¢ in to MXN at Dee' 19 rate 14 = MXN 19.3193 94797 = -> 1831450MÖN ate Converion of €ZM into UC d att Dee's ex-Rate - 20,00,000€ > 4 2376,0o00 conversion d 4 into G at Dee'l19 ex-Rate -$1.1051 le $ 22760OD E2059542