Arnie is an American teaching English in Japan, and he currently has 55,000 yen in his bank account. If the exchange rate changes from 1 U. S. dollar = 90.77 Japanese yen to 1 U. S. dollar = 91.24 Japanese yen, what happens to the value in U. S. dollars of the money in Arnie's bank account?

Question

Zaniyah Keith

Mathematics

7 February, 20:19

Arnie is an American teaching English in Japan, and he currently has 55,000 yen in his bank account. If the exchange rate changes from 1 U. S. dollar = 90.77 Japanese yen to 1 U. S. dollar = 91.24 Japanese yen, what happens to the value in U. S. dollars of the money in Arnie's bank account?

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Lillie Peterson · Answer 1

55,000 / 90.77 = 605.927068415

Originally his 55K Yen is worth $605.93.

55,000 / 91.24 = 602.805786936

After the change in exchange rate, his 55K Yen is worth $602.81

Because of the new exchange rate, the value of the U. S. dollars in Arnie's bank account decreases from $605.93 to $602.81.