Question

2 FUILS
Amber is an American teaching English in China, and she currently has 35,000
yuan in her bank account. If the exchange rate changes from 1 U.S. dollar =
6.83 Chinese yuan to 1 U.S. dollar = 6.96 Chinese yuan, what happens to the
value in U.S. dollars of the money in Amber's bank account?
O
A. It increases by $4550.00.
O
B. It decreases by $4550.00.
c. It decreases by $95.71.
O
D. It increases by $95.71.
What’s the answer

Answer 1

Answer:

c

Step-by-step explanation:

Answer 2

Amount in Amber's bank account will decreases by $95.71.

What is exchange rate?

" Exchange rate is defined as the rate of one currency using which it can be converted to the other currency."

According to the question,

Amount in Amber's bank account  = 35,000 yuan

Old exchange rate  

1U.S dollar = 6.83 Chinese yuan

Value of Amber's amount in dollar = (35,000/ 6.83)

                                                         = 5124.45 U.S. dollar

New exchange rate  

1U.S dollar = 6.96 Chinese yuan

Value of Amber's amount in dollar = (35,000/ 6.96)

                                                         = 5028.74 U.S. dollar

Value  of money as per 6.83yuan > Value  of money as per 6.96yuan.

Therefore, amount decreases in the account.

Difference in amount = 5124.45 - 5028.74

                                   = $ 95.71

Hence, Amount in Amber's bank account will decreases by $95.71.

Learn more about exchange rate here

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