Question

Suppose that 1 Swedish krona could be purchased in the foreign exchange market today for $0.2. If the krona appreciated 6% tomorrow against the dollar, how many kronas would a dollar buy tomorrow? Round your answer to two decimal places. Do not round intermediate calculations. ______kronas Quantitative Problem 2: Suppose the exchange rate between the U.S. dollar and the South African rand was 19 rand = $1 and the exchange rate between the U.S. dollar and the Israeli shekel was 1 shekel = $0.75. What was the exchange rate between the South African rand and the Israeli shekel? Round your answer to two decimal places. Do not round intermediate calculations. ______rands per shekel

Answer 1

A dollar would buy 4.72 kronas tomorrow. The exchange rate between the South African rand and the Israeli shekel is 14.25 rands per shekel.

Step-by-step explanation:

To find out how many kronas a dollar would buy tomorrow, we need to calculate the exchange rate after the appreciation. The krona appreciated by 6%, so the new exchange rate would be $0.2 + ($0.2 x 0.06) = $0.212. Since the question asks for how many kronas a dollar would buy, we need to take the reciprocal of the exchange rate. So, a dollar would buy 1 / $0.212 = 4.72 kronas tomorrow.

To determine the exchange rate between the South African rand and the Israeli shekel, we can use the given exchange rates between the U.S. dollar and each currency. According to the information provided, 19 rand = $1 and 1 shekel = $0.75. To find the exchange rate between rand and shekel, we can set up a proportion using these exchange rates.

19 rand / 1 shekel = $1 / $0.75

Cross-multiplying, we get 19 rand * $0.75 = 1 shekel * $1

Calculating the expression, we find that 14.25 rand = 1 shekel. Therefore, the exchange rate between the South African rand and the Israeli shekel is 14.25 rands per shekel.

Answer 2

To calculate the number of kronas that a dollar would buy tomorrow, we need to calculate the new exchange rate after the krona has appreciated 6% against the dollar. To calculate the exchange rate between the South African rand and the Israeli shekel, we need to convert the exchange rates between each currency and the U.S. dollar.

Step-by-step explanation:

To calculate the number of kronas that a dollar would buy tomorrow, we need to calculate the new exchange rate after the krona has appreciated 6% against the dollar.

Given that 1 Swedish krona can be purchased for $0.2 today, the appreciation of 6% means that the new exchange rate would be:

(1 + 0.06) * $0.2 = $0.212

So, tomorrow a dollar would buy approximately 4.72 kronas.

To calculate the exchange rate between the South African rand and the Israeli shekel, we need to convert the exchange rates between each currency and the U.S. dollar.

Given that 19 rand = $1 and 1 shekel = $0.75, the exchange rate between the South African rand and the Israeli shekel can be calculated as:

19 rand / 1 shekel = 25.33 rands per shekel.