Exchange rates The table lists foreign exchange rates for August 3, 2011. On tha

Question

Exchange rates

The table lists foreign exchange rates for August 3, 2011. On that day, how many dollars would be required to purchase 900 units of each of the following: British pounds, Canadian dollars, EMU euros, Japanese yen, Mexican pesos, and Swedish kronas? Round your answers to the nearest cent.

Sample Exchange Rates: Wednesday, August 3, 2011 Direct Quotation:
U.S. Dollars Required to Buy
One Unit of Foreign Currency
(1) Indirect Quotation:
Number of Units of Foreign
Currency per U.S. Dollar
(2) Australian dollar $1.0756 0.9297 Brazilian real $0.6385 1.5662 British pound 1.6426 0.6088 Canadian dollar 1.0392 0.9622 Chinese yuan 0.1553 6.4392 Danish krone 0.1923 5.2004 Euro 1.4323 0.6982 Hungarian forint 0.00527 189.75 Israeli shekel 0.2887 3.4641 Japanese yen 0.01297774 77.06 Mexican peso 0.0846 11.8205 South African rand 0.1488 6.7217 Swedish krona 0.1577 6.3420 Swiss franc 1.2983 0.7703 Venezuelan bolivar fuerte 0.22988506 4.3500 Note: Column 2 equals 1.0 divided by Column 1. However, rounding differences do occur. Source: Adapted from The Wall Street Journal (online.wsj.com), August 4, 2011.

Explanation / Answer

Since, we have to find out the number of dollars required to purchase 900 units of other currencies, we will be using Direct Quotation.

US Dollars required to buy 900 units of Foregin Currency = 900 * Exchange Rate (Direct Quotation)

Thus, US Dollars required to buy 900 units of

1. British Pounds = 900 * 1.6426 = $1478.34

2. Canadian Dollars = 900 * 1.0392 = $935.28

3. EMU Euros = 900 * 1.4323 = $1289.07

4. Japanese Yen = 900 * 0.01297774 = $11.68

5. Mexican pesos = 900 * 0.0846 = $76.14

6. Swedish kronas = 900 * 0.1577 = $141.93

British pounds $   1478.34 Canadian dollars $   935.28 EMU euros $   1289.07 Japanese yen $   11.68 Mexican pesos $   76.14 Swedish kronas $   141.93

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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