Question

Suppose a Toyota costs 2 million yen, and a Caterpillar tractor costs $300,000. If the exchange rate between Japan and the United States was 80 yen per dollar, calculate the price of the Toyota to someone in the United States and the price of the tractor to someone in Japan.

Answer 1

Answer : Given,

$1 = 80 yen

Now if we convert $300,000 in Japanese yen, then we have,

$1 = 80 yen

$300,000 = 80 * 300,000 = 24,000,000 yen = 24 million yen.

Now again if we convert 2 million or 2,000,000 yen in U.S. dollar then we get,

80 yen = $1

1 yen = $ 1/80

2 million yen = 2,000,000 yen = (1 * 2,000,000) / 80 = $25,000

Therefore, the price of Toyota in United States is $25,000 and the price of tractor in Japan is 24 million yen [ As cost is the price to someone ] .