Question

Use the following chart to answer the next two questions.

2/17	2/18	2/19
£.8/$	$1.30/£	£.9/$
¥125/$	¥122/$	$.007/¥
€1.1/$	€/$.85	$.95/€

QUESTION 1

What is the percentage appreciation/depreciation of the Euro from the US point of view from 2/17 to 2/18? Round intermediate steps and your final answer to four decimals.

QUESTION 2

What is the percentage appreciation/depreciation of the dollar from the Japanese point of view from 2/18 to 2/19?

SHOW STEPS, THANKS.

Answer 1

If one currency is Appreciated then the other one is depreciated.

In 2/17-

1$ = 0.8

In 2/18-

1$ = 1.30

So there is apprciation of Euro By = [(1.30-0.8)/0.8]*100

= 62.5%

In 2/17-

1$ = 1.10

In 2/18-

1$ = 0.85

So there is Depreciated of Euro By = [(0.85-1.10)/1.10]*100

= -22.73%

2. Appreciation or depreciation of dollar with respect to Japanese yean

In 2/18-

1$ = 122

In 2/18-

1$ = 142.86

So there is apprciation of Doolar By = [(142.86-122)/122]*100

= 17.10%