In September 1983, it took about 245 Japanese yen to equal $1. Thirty-one years later, in September

Question:

In September 1983, it took about 245 Japanese yen to equal $1. Thirty-one years later, in September 2014, the exchange rate had fallen to 98 yen to $1. Assume the price of a Japanese manufactured automobile was $8,000 in September 1983 and that its price changes were in direct relation to exchange rates.

a. Has the price, in dollars, of the automobile increased or decreased during the 31-year period because of changes in the exchange rate?

b. What would the dollar price of the car be in September 2014, assuming the car's price changes only with exchange rates?

c. What is the compound annual growth rate in the dollar automobile cost?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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