The beginning-of-the-year prices for a pair of boots are $50 in the United States and ¥8,000 in Japan.We know that prices in the United States and Japan will change over the coming year due to inflation.If we assume that inflation in the United States (our home country,infh)will be 4% and inflation in Japan will be 3% (our foreign country,inff),what will the price of the boots be at the end of the year?

Question

Quizplus · Accepted Answer

To find the new price of the boots in the United States, we need to add the inflation rate of 4% to the original price of $50:

$50 + (0.04)($50) = $52

Therefore, the new price of the boots in the United States will be $52.

To find the new price of the boots in Japan, we need to add the inflation rate of 3% to the original price of ¥8,000:

¥8,000 + (0.03)(¥8,000) = ¥8,240

Therefore, the new price of the boots in Japan will be ¥8,240.

Thus, the best choice is B (The U.S. boot price is $52 and the Japanese boot price is ¥8,240.)

The Beginning-Of-The-Year Prices for a Pair of Boots Are $50