The value of the euro against the U.S. dollar when it began public trading on January 1, 2002 was $0.89139/€. Ten years later on January 1, 2012 the exchange rate was $1.29568/€. What was the average annual change in the value of the euro over this 10-year period?

Question

Quizplus · Accepted Answer

The average annual change is calculated by finding the percentage increase from the initial value to the final value over the 10-year period, then dividing by 10. The increase from $0.89139 to $1.29568 is $0.40429, which is approximately a 45.36% increase over 10 years. Dividing this by 10 gives an average annual increase of about 4.536%, which falls into the range of more than 0% and less than or equal to 5%.

The Value of the Euro Against the U