Results of exchange rate changes Early in September 1983, it took 255 Japanese y

Question

Results of exchange rate changes

Early in September 1983, it took 255 Japanese yen to equal $1. Nearly 28 years later, in August 2011, that exchange rate had fallen to 115 yen to $1. Assume that the price of a Japanese-manufactured automobile was $11,000 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 28-year period because of changes in the exchange rate?
-Select-increaseddecreasedItem 1

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

Ans

Detail Amount Exchange Ratio in 1983 "255:1 $ Price of the Automobile $11,000.00 Yen Price of Automobile ¥28,05,000.00 Exchange Ratio in 2011 "115:1 $ Price of Automobile $25,270.27 Price in $ has increase because Yen has appreciated making Japan made things costlier in other currencies

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