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18 February, 14:56

Sampson is a New Zealand exchange student in China, and he currently has 18,000 yuan in his bank account. If the exchange rate changes from 1 New Zealand dollar = 4.75 Chinese yuan to 1 New Zealand dollar = 4.89 Chinese yuan, what happens to the value in New Zealand dollars of the money in Sampson's bank account?

A Increases by $2520.00

B Decreases by $2520.00

C Decreases by $108.49

D Increases by $108.49

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Answers (1)
  1. 18 February, 15:39
    0
    Equation is (18,000*4.89) - (18,000*4.75) = 2520

    so the answer A as the exchange rate increases so 1 NZ dollar will equal to more Chinese yuan
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