Question

Steven converted $1,000 to ×105,000 for a trip to Japan. However, he spent only ×50,000. During this period, the value of the dollar weakened against the yen. Considering a current exchange rate of $1 = ×100, how many dollars did Steven spend on the trip? A. $550B. $523C. $450D. $600E. $500

Answer 1

E

Explanation:

We were told Steven spent an amount of 50,000. Although the value of the dollar against the yen has changed. So therefore, to calculate the amount of money he spent, we would be needing to divide the amount he spent over the present exchange rate of the dollars to yen.

We then divide the 50,000 by 100 and that equals $500.

Hence, the amount of money spent by Steven is simply $500