Question

Taylor bought a painting for 1 million yen while in Japan. At the time, exchange rate was 1 dollar to 126 yen. If a friend offers $2,000 dollars for the painting would Taylor profit?

Answer 1

No, she would not profit.

Explanation:

1 dollar = 126 yen

x = 1000000 yen

1000000 ÷ 126 = $7, 936.51

$2,000 is not enough to cover the value of the painting as Taylor would lose over $5,000. So, she would not profit.

Hope that helps.