Suppose 144 yen could be purchased in the foreign exchange market for one U.S. dollar today. If the yen depreciates by 8.0% tomorrow, how many yen could one U.S. dollar buy tomorrow?
A) 155.5 yen
B) 144.0 yen
C) 133.5 yen
D) 78.0 yen
E) 72.0 yen

Question

Quizplus · Accepted Answer

If the yen depreciates by 8%, it means the value of the yen decreases, so you can buy more yen with one dollar. Calculate 8% of 144 yen (which is 11.52 yen) and add it to 144 yen to get 155.52 yen, which rounds to 155.5 yen.

Suppose 144 Yen Could Be Purchased in the Foreign Exchange