Homework Answers
Answer - The new exchange rate for yen will be $0.0070
Reason -
New exchange rate = ( 1 + US rate ) ÷ (1 + Japan rate) * current exchange rate
= (1 + 0.03) ÷ ( 1 + 0.10) * 0.0075
= 0.9363636 * 0.0075
= 0.007022727 or $0.0070 ( rounded off)
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