Question

You are an intemaboral shrimp trader. Afood producer in the Czech Republic offers to pay you 2.2 anilion Czech koruria today in exchange for a year'i auppy of fnozen shrimp. Your Thai supplier will provide you with the same fupply for 3.1 milion Thal baht loday If the current compestive markot exchango rates are 25 . 33 koruna per dollar and 40.61 baht per dollar, what is the value of this exchange to you? The cost of the shrimp from the Thai suppler in dollars in 5 (Round to the nearest cent.) The ansount the Czech producer is willing to pay for the shimp in dollars is 5 (Round to the nearest cent))

Answer 1

Answer: The value of this exchange to you is approximately $10,470.15.

Step-by-step explanation: To determine the value of the exchange, we need to convert the amounts in Czech koruna and Thai baht to dollars. First, let's convert the cost of the shrimp from the Thai supplier to dollars. The Thai supplier offers the same supply for 3.1 million Thai baht. Using the exchange rate of 40.61 baht per dollar, we can calculate: 3.1 million Thai baht / 40.61 baht per dollar = 76,350.17 dollars (rounded to the nearest cent) Therefore, the cost of the shrimp from the Thai supplier in dollars is approximately $76,350.17. Next, let's convert the amount the Czech producer is willing to pay for the shrimp in dollars. The Czech producer offers 2.2 million Czech koruna. Using the exchange rate of 25.33 koruna per dollar, we can calculate: 2.2 million Czech koruna / 25.33 koruna per dollar = 86,820.32 dollars (rounded to the nearest cent) Therefore, the amount the Czech producer is willing to pay for the shrimp in dollars is approximately $86,820.32. So, the value of this exchange to you is the difference between the amount the Czech producer is willing to pay and the cost of the shrimp from the Thai supplier in dollars: 86,820.32 dollars - 76,350.17 dollars = 10,470.15 dollars (rounded to the nearest cent).