What is the percentage change in the value of a $50 million investment in Russia when the exchange rate changes from $1 = 7 rubles to $1 = 12 rubles?

Question

Quizplus · Accepted Answer

The value of the investment in rubles is 50 million * 7 = 350 million rubles. When the exchange rate changes to $1 = 12 rubles, the value of the investment in dollars becomes 350 million rubles / 12 rubles per dollar = $29.17 million. The percentage change is (29.17 - 50) / 50 * 100 = -41.67%.

What Is the Percentage Change in the Value of a $50