Problem 17-05 Currency Appreciation Suppose that the exchange rate is 0.60 dollars per Swiss franc. If...
Problem 17-05 Currency Appreciation Suppose that the exchange rate is 0.60 dollars per Swiss franc. If the franc appreciates 5% against the dollar, how many francs would a dollar buy tomorrow? Do not round intermediate calculations. Round your answer to two decimal places. francs
Homework Answers
1 Swiss franc = 0.60 dollars
Franc appreciates 5% against dollar.
% shall be adjusted in reverse currency. It means 5% will added to Dollar side
1 Swiss franc = 0.60+( 5% * 0.60)
1 Swiss franc = 0.63 dollars
1 dollar = 1/0.63 Swiss franc
= 1.5873015873015 or 1.5873 Swiss franc
So, a dollar would buy 1.5873 Swiss franc
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Problem 17-05 Currency Appreciation Suppose that the exchange
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