If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 8 old dollars, then a mortgage of $100,000 would become a debt of _____ new dollars.
A) 12,500
B) 99,992
C) 100,000
D) 800,000

Question

Quizplus · Accepted Answer

If the exchange rate is 1 new dollar for 8 old dollars, we can convert the mortgage of $100,000 into new dollars by dividing it by 8:
$100,000 ÷ 8 = $12,500 new dollars. Therefore, the answer is A) 12,500.

If the US Dollar Were Replaced with a "New Dollar" at an at an Exchange