HST 04 07 Practice GA
Name: Zakariya Jourane
Date: 4/20/15
Graded Assignment
Practice: You Do the Math
Answer the following questions based on what you’ve learned about currency exchange rates. To find the amount of U.S. dollars that any given amount of currency will buy, simply multiply the currency by the exchange rate provided.
(5 points)
1. Two college students went to Guadalajara, Mexico, on their spring breaks. One took the vacation in 2002, while the other went in 2006. Each student had $500 to spend. In 2002, the exchange rate of MXN/USD (Mexican pesos to U.S. dollars) was 9. In 2006, the exchange rate was 11. A hotel room in Guadalajara cost 200 pesos per night in 2002 and 220 pesos in 2006. If each student spent five nights in a hotel, which student had more pesos left over? Exactly how many did that student have?
The student who visited in 2006 had 4400 Mexican pesos remaining.
(5 points)
2. A Canadian wheat farmer wants to buy a tractor in the United States. The tractor costs $100,000. In the fall of 2005, the CAD/USD (Canadian dollars to U.S. dollars) exchange rate was 1.2. In the spring of 2006, the exchange rate was 1.15. In which year would the farmer pay the least amount of Canadian dollars to buy the tractor?
2005
(5 points)
3. A marine biologist is planning to move from Sydney, Australia, to San Francisco. She has $5,000 Australian dollars (AUD) to make the move. In the summer of 2006, the exchange rate of USD/AUD (U.S. dollars to Australian dollars) is 0.765, and the USD is rising against the AUD. If the rising dollar trend continues, and all other economic elements remain equal, will her AUD be worth more USD now or later? Explain.
It will be worth more now because the USD is rising against the AUD, which means that it will take more AUD to be worth one dollar. Currently (2006), the marine biologist can receive over 6,500 USD is she converts her currency. In the future, however; she will receive less USD. It may even reach the point that she actually loses
Date: 4/20/15
Graded Assignment
Practice: You Do the Math
Answer the following questions based on what you’ve learned about currency exchange rates. To find the amount of U.S. dollars that any given amount of currency will buy, simply multiply the currency by the exchange rate provided.
(5 points)
1. Two college students went to Guadalajara, Mexico, on their spring breaks. One took the vacation in 2002, while the other went in 2006. Each student had $500 to spend. In 2002, the exchange rate of MXN/USD (Mexican pesos to U.S. dollars) was 9. In 2006, the exchange rate was 11. A hotel room in Guadalajara cost 200 pesos per night in 2002 and 220 pesos in 2006. If each student spent five nights in a hotel, which student had more pesos left over? Exactly how many did that student have?
The student who visited in 2006 had 4400 Mexican pesos remaining.
(5 points)
2. A Canadian wheat farmer wants to buy a tractor in the United States. The tractor costs $100,000. In the fall of 2005, the CAD/USD (Canadian dollars to U.S. dollars) exchange rate was 1.2. In the spring of 2006, the exchange rate was 1.15. In which year would the farmer pay the least amount of Canadian dollars to buy the tractor?
2005
(5 points)
3. A marine biologist is planning to move from Sydney, Australia, to San Francisco. She has $5,000 Australian dollars (AUD) to make the move. In the summer of 2006, the exchange rate of USD/AUD (U.S. dollars to Australian dollars) is 0.765, and the USD is rising against the AUD. If the rising dollar trend continues, and all other economic elements remain equal, will her AUD be worth more USD now or later? Explain.
It will be worth more now because the USD is rising against the AUD, which means that it will take more AUD to be worth one dollar. Currently (2006), the marine biologist can receive over 6,500 USD is she converts her currency. In the future, however; she will receive less USD. It may even reach the point that she actually loses