Problem Set 7 Exchange Rates O Assumption #1: It costs $10,000 a year to attend GSU and this figure hasn't changed since 2015. Assumption # 2: All costs are incurred and paid at the beginning of the academic year. For example, for the 2016-17 academic year costs are paid in August 2016. Assumption # 3: 2015-16, 2016-17, and 2017-18 is sophomore year, junior year, and senior year, respectively. Assumption #4: Terrance is from the United Kingdom and he attended GSU. He graduated in May after four years of study. Maria is from Mexico and she also graduated in May from GSU after four years of study. Based on these assumptions and the attached Foreign Exchange Rates table, answer the following questions. 1. How much did it cost in pounds for Terrance to attend GSU his senior year? 2. Did the pound appreciate, depreciate, or stay the same between Terrance's sophomore and junior year? 3. Terrance returned to school his senior year with 200 pounds. How many dollars was that worth? 4. How much did it cost in pesos for Maria to attend GSU her sophomore year? 4. How much did it cost in pesos for Maria to attend GSU her sophomore year? 5. Did the peso appreciate, depreciate, or stay the same between Maria's sophomore and junior year? 6. Maria return to school her senior year with 300 pesos. How many dollars was that worth? COUNTRY MEXICO CURRENCY PESO CACHANGE RATE TABLE 2018 19.21 2017 18.88 2016 18.67 2015 15.87 *UNITED KINGDOM POUND 1.34 1.29 1.36 1.52 Please note that for Mexico the exchange rates are in terms of pesos per U.S. dollar and that for the U.K. the exchange rates are in terms of U.S. dollar per pound. In other words, for 2018 it takes 19.21 Pesos to equal $1 and one UK pound is equal to $1.34.