Question

Suppose you plan to visit Japan in December. You think you will need 150,000 yen for your trip. How many dollars do you need if one Japanese Yen is worth $0.0088? In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or $8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 yen per dollar, what would the car be selling for today in U.S. dollars.

Answer 1

Money needed to visit Japan = 150,000 yen

1 Japanese yen = $0.0088

So,,x Japanese Yen would be equal to x*0.0088 dollars

The Japan trip will cost = 0.0088*150,000 = $1,320.00

The Japanese automobile costs in 1985 = 1,476,000 japanese yen

Today also the car can be sold for the same amount i.e. 1,476,000 japanese yen

As per current exchange rate, $1 = 144 japanese yen

i.e. 144 japanese yen = $1

So, 1 Japanese yen = $1/144 = $0.0069

Therefore, 1,476,000 japenese yen = $(0.0069*1476000) = $10,250

Currently, car can be sold at $10,250