You obtain the following informaiton about Japanese Yen (Note that Japanese Yen is quoted as Yen per U.S. Dollar). Aug. 2012: 78.6909 Aug. 2014: 102.9438 What is the percentage change in the value of Japanese Yen from Aug. 2012 to Aug. 2014 ? (Note: you will need direct quotation to apply the formula of percentage change in currency value; you don't need to annulize the rate; find the closest answer since different rounding practice may give you different but very close answers) A. -30.82% B. -23.51% C. -20.89% D. 30.82%
In Aug 2012,
¥ 78.6909 = $ 1[As per direct quote fixed unit of $ and variable unit of Yen have been considered]
1 ¥ = 1/78.6909 = 0.01270795 $
In Aug 2014,
¥ 102.9438 = $ 1
1 ¥ = 1/102.9438 = 0.009714038 $
Chang in value = (Final value – Initial value)/Initial value
= (0.009714038 - 0.01270795)/ 0.01270795
= - 0.002993912/0.01270795 = - 0.235593596 or – 23.56 %
Hence option “B. $ -23.51 %” is correct answer.
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