Question

Venezuelan Bolivar (B). The Venezuelan government officially floated the Venezuelan bolivar (Bs) in February 2002. Within weeks, its value had moved from the pre-float fox of Bs 782/5 to Bs 1,021/5. The Venezuelan political and economic crisis deepened in late 2002 and early 2003. On January 1, 2003, the bolivar was trading at Bs 1,404/5 By February 1, its value had fallen to Bs 1,947/5. Many currency analysts and forecasters were predicting that the bolivar would fall an additional 38% from its February 1 value by early summer 2003. a. What was the percentage change in January? b. What is the forecast value for June 2003? a. What was the percentage change in January? The percentage change is % (Round to two decimal places.) b. What is the forecast value for June 2003? The forecast value for June 2003 is Bs (Round to the nearest Bolivar)

Answer 1

Please find the solution in the below image-

Solutipy Given On January 1 B5 1. you /& on February 1 BS 194716 BS Venezuelan Percentage change curreny. in January @ 3 1947 - 1404 1 чо ч forecast Value of June 2003 - February 1, Bs 1947/ The valice of as has faller by 38% So, the value is - 1947 11720) # Bs 2686.86 A