Aggie is an Australian exchange student in China, and she currently has 14,000 yuan in her bank account. If the exchange rate changes from 1 Australian dollar = 6.21 Chinese yuan to 1 Australian dollar = 6.37 Chinese yuan, what happens to the value in Australian dollars of the money in Aggie's bank account?

Question

Scott Perkins

Mathematics

3 June, 05:52

Aggie is an Australian exchange student in China, and she currently has 14,000 yuan in her bank account. If the exchange rate changes from 1 Australian dollar = 6.21 Chinese yuan to 1 Australian dollar = 6.37 Chinese yuan, what happens to the value in Australian dollars of the money in Aggie's bank account?

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Answers (1)

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Kiana Benton · Answer 1

Find the value in Australian dollars for each exchange rate.

1st exchange rate:

14000/6.21 = $2254.43

2nd exchange rate:

14000/6.37 = $2197.80

Find the difference between the two:

$2254.43 - $2197.80 = $56.63

Since the first value is greater than your second one Aggie lost money and your answer is It decreases by $56.63.