Question

Last year a euro was equal to S1.0852, and a S was equal to 3.67 AED. Today, the euro is equal to S1.0553 and a S is unchanged with AED. By what percentage did the cross-exchange rate of the AED in euro (that is, the number of AED that can be purchased with one euro) change over the last year. Did ABD depreciate against euro in 2023?

Answer 1

The cross-exchange rate of the AED in euros changed by -2.88% over the last year, indicating that the AED appreciated against the euro.

Step-by-step explanation:

To calculate the percentage change in the cross-exchange rate of the AED in euros, we need to compare the amount of AED one could buy with one euro last year and today. Last year, with one euro being equal to $1.0852 and one dollar equal to 3.67 AED, one euro could purchase 3.9878 AED (1.0852 * 3.67). Today, with one euro equal to $1.0553, one euro can purchase 3.8727 AED (1.0553 * 3.67).

Now, let's calculate the percentage change:

Percentage change = ((New Value - Old Value) / Old Value) * 100%

Percentage change = ((3.8727 - 3.9878) / 3.9878) * 100% = (-2.88%)

The cross-exchange rate decreased by 2.88%, which means that the AED appreciated against the euro since you now get fewer AED for each euro compared to last year.