Suppose one British pound can purchase 1.82 US dollars today in the foreign exchange market,and currency forecasters predict that the US dollar will depreciate by 12.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?

A) 1.12
B) 1.63
C) 1.82
D) 2.04

Question

Brenda Hernandez · Accepted Answer

Final Answer : D, Explanation :  If the US dollar depreciates by 12% against the pound, then the new exchange rate will be:1 pound = (1 + 0.12) * 1.82 dollars1 pound = 2.04 dollarsTherefore, a pound will buy 2.04 dollars in 30 days. The answer is D.

Suppose one British pound can purchase 1.82 US dollars today in the foreign exchange market,and currency forecasters predict that the US dollar will depreciate by 12.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?

A) 1.12
B) 1.63
C) 1.82
D) 2.04

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Learning Objectives

Related questions

Suppose one British pound can purchase 1.82 US dollars today in the foreign exchange market,and currency forecasters predict that the US dollar will depreciate by 12.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?A) 1.12B) 1.63C) 1.82D) 2.04

Definitions

Learning Objectives

Learning Objectives

Related questions

Suppose one British pound can purchase 1.82 US dollars today in the foreign exchange market,and currency forecasters predict that the US dollar will depreciate by 12.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?

A) 1.12
B) 1.63
C) 1.82
D) 2.04