Suppose 104 yen could be purchased in the foreign exchange market for one Canadian dollar today. If the yen depreciates by 8.0% tomorrow, how many yen could one Canadian dollar buy tomorrow?

Question

Quizplus · Accepted Answer

If the yen depreciates by 8%, it means the yen becomes cheaper. Therefore, the number of yen one Canadian dollar can buy increases by 8%. 104 yen * 1.08 = 112.32 yen, which rounds to 112.3 yen.

Suppose 104 Yen Could Be Purchased in the Foreign Exchange