How and why each number are used to find the percentages. (The problems have already been solved, just need help understanding why) You noticed that the exchange rate between the Thai baht and the dollar has changed considerably. In particular, the baht/$ exchange rate has increased from 25 to 30

 

• This is saying B/$ B25 B30
  • 1 dollar initially equal to B25 now 1 dollar is worth B30

a. By what percentage has the value of the dollar changed with respect to the Thai Baht?

• (30 - 25) / 25 = 20%, dollar appreciated by 20%

b. Has the Thai baht appreciated or depreciated with respect to the dollar? By what percentage?

• [ 25 ( 25 - 30) ] / ( 25 x 30 ) = -125/ 750 = -16.67%
• So Thai Baht depreciated by 16.67 percent