Wayne Brown is a Canadian citizen studying on a U.S.campus.When he came to school in September he had C$400, with which he purchased US$300.Just before returning to Canada the following June, Wayne used his US$300 to purchase C$450.What was the purchasing power of the U.S.dollar in June compared to September?

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Quizplus · Accepted Answer

In September, Wayne exchanged C$400 for US$300, meaning 1 US dollar bought him 400/300 = 1.3333 Canadian dollars. In June, he exchanged US$300 for C$450, meaning 1 US dollar bought him 450/300 = 1.5 Canadian dollars. The increase in purchasing power from 1.3333 to 1.5 Canadian dollars per US dollar is an increase of (1.5 - 1.3333) / 1.3333 = 0.125 or 12.5 percent.

Wayne Brown Is a Canadian Citizen Studying on a U