Question

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 Sampsons's bank account?

Answer 1

The answer is that it decreases by 108.49

Explanation:

Answer 2

Since exchange rate increase, therefore one New Zealand dollar will equal to more chinese yuan.

Explanation:

Given data:

Total amount in yuan = 18000

Exchange rate change one new zealand dollar equal to 4.75 chinese yuan to one NZ dollar equal to 4.89

From the data given above information we have

`18000* 4.89 - 18000* 4.75  = 2520`

Since exchange rate increase, therefore one New Zealand dollar will equal to more chinese yuan.