Sampson is a New Zealand exchange student in China, and he currently has 18,000 yuan in his bank account. If the exchange rate changes from 1 New Zealand dollar = 4.75 Chinese yuan to 1 New Zealand dollar = 4.89 Chinese yuan, what happens to the value in New Zealand dollars of the money in Sampson's bank account?

A Increases by $2520.00

B Decreases by $2520.00

C Decreases by $108.49

D Increases by $108.49

Question

Meghan Middleton

14 September, 06:49

+1

Answers (1)

Know the Answer?

Elian Burch · Answer 1

Equation is (18,000*4.89) - (18,000*4.75) = 2520

so the answer A as the exchange rate increases so 1 NZ dollar will equal to more Chinese yuan