Question

Foreign Exchange Rates

County / Currency Foreign Currency in U.S. Dollars U.S. Dollars in Foreign Currency
UK / Pound 2.0292 .4928
Japan / Yen .0084 118.9599
India / Rupee .0248 40.3950
Canada / Dollar .9394 1.0645

Micah is an exchange student living in Japan. He wants to buy a new-release movie for 2,000 Japanese yen. When he calls home, he discovers the movie sells for $25. Micah decides to
A) wait because the movie costs relatively the same amount in both countries.
B) buy the movie in Japan because it is relatively less expensive than in the U.S.
C) wait to buy the movie in the U.S. because it is relatively less expensive in the U.S.
D) buy the movie in the U.S. and pay $10 to ship it because the total cost will still be less.

Answer 1

The correct answer for this question would be option B. Since she discovers that the movie sells for $25 when she calls home, and the new-release movie is for 2,000 Japanese yen, Micah decides to buy the movie in Japan because it is relatively less expensive than in the U.S. Hope this answer helps.

Answer 2

I believe the answer is: B) buy the movie in Japan because it is relatively less expensive than in the U.S.

from the data, we know that

Japan / Yen .0084118.9599

This number mean that 1 japanese yen is the equivalent of .00841189599 US dollars.

So, 2000 Yen is equivalent to:

2000 x 0.00841189599 = 16.82379198 US Dollars

If Micah buy the movie in Japan, he saved up around $ 8.17