View Insert Format Tools Data Window Help Brandon Orange Unit 3 HW, Summer 2018

Question

View Insert Format Tools Data Window Help Brandon Orange Unit 3 HW, Summer 2018 59 : x './ Borrowed 10 mS$ @24% Given the January 2015 exchange rates (Euros/one unit foreign currency) and the appreciation/depreciation information, determine the value of the euro as of Sept 2, 20172 For example, the pound depreciated against the euro, while the uS dollar appreciated against the euro. Did the euro appreciate or Amount appreciate/ What is value depreciate ag depreciate of the euro on 4/16/18 each specific currency? (1/31/2015 to British Pound US Dollar Swiss Franc Japanese Yen Chinese Yuan 1/31/15 4/16/18) €1.3303-13.00% €0.8851-8.40% €0.9600-12.32% €0.0075 0.53% €0.1433-10.19%

Explanation / Answer

Appreciation refers to increase in value of currency and depreciation refers to fall in value of currency.

The calculation are as follows:

Amount appreciate/depreciate (1/31/2015 to 4/16/18) What is the value of the Euro on 04/16/18 Did the Euro appreciate of depreciate against each specific currency 1/31/15 British Pound Euro 1.3303 -13% British Pound 0.6540 Value of Euro has depreciated US Dollar Euro 0.8851 -8.40% US Dollar 1.0349 Value of Euro has depreciated Swiss Franc Euro 0.9600 -12.32% Swiss Franc 0.9133 Value of Euro has depreciated Japanese Yen Euro 0.0075 0.53% Japanese Yen 134.0483 Value of Euro has appreciated Chinese Yuan Euro 0.1433 -10.19% Chinese Yuan 6.2657 Value of Euro has depreciated We would first find the value of Euros/per unit of foreign currency as on 04th June 2018 and than convert the same to find value of Euro Base currency is foreign currency and Euro is the quote currency Percent Change = V1(starting rate) -V2(Final rate)/V2(Final rate) *100 British Pound and Euro (0.13) = (1.3303-V2)/V2 Solving for above gives 1.5291 1 Euro on 31/01/15 = 1/1.3303               0.7517 1 Euro on 16/04/18 = 1/1.5291 0.6540 US Dollar and Euro Using the above formula (0.0840)=(0.8851-V2)/V2 Solving for above gives 0.9663 1 Euro on 31/01/15 = 1/0.8851 1.1298 1 Euro on 16/04/18 = 1/0.9663 1.0349 Swiss Franc and Euro Using the above formula (0.1232)=(0.9600-V2)/V2 Solving for above gives 1.0949 1 Euro on 31/01/15 = 1/0.9600 1.0417 1 Euro on 16/04/18 = 1/1.0949 0.9133 Japanese Yen and Euro Using the above formula 0.0053=(0.0075-V2)/V2 Solving for above gives 0.00746 1 Euro on 31/01/15 = 1/0.0075 133.3333 1 Euro on 16/04/18 = 1/0.00746 134.0483 Chinese Yuan and Euro Using the above formula (0.1019)=(0.1433-V2)/V2 Solving for above gives 0.1596 1 Euro on 31/01/15 = 1/0.1433 6.9784 1 Euro on 16/04/18 = 1/0.1596 6.2657

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