10

.docx

School

Georgia State University *

*We aren’t endorsed by this school

Course

2100

Subject

Economics

Date

Apr 3, 2024

Type

docx

Pages

2

Uploaded by AgentDiscovery2697

Report
Must be Typed Exchange Rates 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? ____________ Exchange rate: 2017= 1.29 Cost per year: $10,000 10,000/1.29= 7,751.94 It cost $7,751.94 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? The pound depreciated between Terrance’s sophomore and junior year. 3. Terrance returned to school his senior year with 200 pounds. How many dollars was that worth? 1.29x200=258 Considering the fact that he returned to his senior year in 2017, 200 pounds would be worth $258 4. How much did it cost in pesos for Maria to attend GSU her sophomore year? ____________ 10,000/15.87= 158,700 During Maria’s sophomore year, it cost 158,700 pesos for her to attend GSU. 5. Did the peso appreciate, depreciate, or stay the same between Maria’s sophomore and junior year? Between her sophomore and junior years, the peso appreciated. 6. Maria return to school her senior year with 300 pesos. How many dollars was that worth? 300/18.88=15.89 1
Must be Typed Since 18.88 pesos is equal to one US dollar and due to Maria entering her senior year in 2017, her 300 pesos would be worth $15.89 during that time. EXCHANGE RATE TABLE COUNTRY CURRENCY 2018 2017 2016 2015 MEXICO PESO 19.21 18.88 18.67 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. 2
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help