On Monday the spot rate of exchange between the Mexican peso and the U.S. dollar is 12.650 (peso/dollar) On the following Tuesday the rate is 13.250. We can say that the U.S. dollar appreciated 2.5 percent relative to the Mexican peso.

Question

Quizplus · Accepted Answer

To calculate the percentage change, we use the formula:

((New Rate - Old Rate) / Old Rate) x 100%

Using this formula, we get:

((13.250 - 12.650) / 12.650) x 100% = 4.73%

Therefore, the U.S. dollar appreciated by 4.73% relative to the Mexican peso, not 2.5%.

On Monday the Spot Rate of Exchange Between the Mexican