Assume today you can exchange $100 for either Can$128 or Ps1,892.Also assume that last year,$100 was worth Can$126 or Ps1,847.Which one of the following statements is correct given this information?

Question

Quizplus · Accepted Answer

First, we need to find the change in exchange rates for both currencies:
- Canadian dollar: (128/126) - 1 = 1.59%
- Mexican peso: (1892/1847) - 1 = 2.44%
Next, we need to apply these changes to $100:
- Canadian dollar: $100 * (1 + 1.59%) = $101.59
- Mexican peso: $100 * (1 + 2.44%) = $102.44
Finally, we convert both amounts to Canadian dollars using today's exchange rates:
- $101.59 / 128 = Can$0.794
- $102.44 / 128 = Can$0.801
Therefore, the correct statement is: $100 invested in Canadian dollars last year would now be worth Ps1,862.44. (Choice E)

Assume Today You Can Exchange $100 for Either Can$128 or Ps1,892.Also