Suppose one British pound can purchase 1.82 U.S.dollars today in the foreign exchange market,and currency forecasters predict that the U.S.dollar will depreciate by 12.0% against the pound over the next 30 days.How many dollars will a pound buy in 30 days?
A)$1.4860
B)$1.6511
C)$1.8346
D)$2.0384
E)$2.2422

Question

Quizplus · Accepted Answer

If the U.S. dollar depreciates by 12% against the pound, the new exchange rate will be 1.82 * (1 + 0.12) = 2.0384 dollars per pound.

Suppose One British Pound Can Purchase 1