Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I cannot figure out what 3e is for the life of me. HELP!!!!!! Part 2: Less Favorable Rates The exchange rates shown in Part 1
I cannot figure out what 3e is for the life of me. HELP!!!!!!
Part 2: Less Favorable Rates The exchange rates shown in Part 1 are the rates available to your company because it exchanges large amounts of currency. If you went to a bank or an exchange counter at a hotel or an airport, the rates for you would be less favorable. 1) What would the USD/EUR exchange rate be if it were 10% worse than the rate in shown in Part 1 (i.e., EUR is 10\% weaker relative to USD)? deo 1.041USD/EUR 2) What would the USD/INR exchange rate be if it were 15% worse than the rate shown in Part 1 (i.e., INR is 15% weaker relative to USD)? 0.0139USD/INR 3) If you change money at a tourist location, like an exchange counter at an airport, you may see "service charges" in addition to unfavorable rates. Say, on your trip, you decide to change some money at the airport in India. You want to change the 325 EUR you still have in your pocket to INR. a. Based on the exchange rates given in Part 1, how many INR could you get for 325 EUR? (Assume you exchange EUR for USD and then USD for INR.) $22,964.42INR325EUR=11567/0.01637= b. What is the effective exchange rate from part a? $22,964.42/325=70.6597 INR/EUR c. Suppose the INR/EUR exchange rate at the airport is 17% worse than the rate you calculated in part b. How many could you get for 325 EUR? Video 70.6597(117%)=58.647551325$19,060.47 3 e. The net exchange from part d is equivalent to what rate? $58.6476INR/EUR f. The rate calculated in part e is what percent worse than the rate in part b? (Hint: it must be more than 17% worse; there is a service charge on top of the 17% from part b. 17.44%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started