Question

On Tuesday, Bob brought home an oriental carpet on approval. The price in the store was 9900 Turkish Lira, but Bob was going to pay in dollars. On Tuesday, one dollar was worth 4.5 Turkish Lira. On Wednesday, the Turkish Lira was devalued such that one dollar was now worth 6.5 Turkish Lira. Feeling lucky by this change, Bob then bought the rug on Wednesday, paying the price of 9900 Turkish Lira with dollars at the new rate. To the nearest dollar, how much did he save due to the devaluation?

Answer 1

Bob saved approximately $677 due to the devaluation of the Turkish Lira, as the cost of the carpet decreased from $2200 to $1523 when calculated with the new exchange rate.

Step-by-step explanation:

Bob saved money on the purchase of the oriental carpet due to the devaluation of the Turkish Lira. On Tuesday, with an exchange rate of 4.5 Lira per dollar, the carpet priced at 9900 Lira would cost Bob = 9900 Lira / 4.5 Lira/Dollar = $2200 (rounded to the nearest dollar). After the devaluation on Wednesday, with the new exchange rate of 6.5 Lira per dollar, the same carpet would cost Bob = 9900 Lira / 6.5 Lira/Dollar = $1523 (rounded to the nearest dollar).

The amount saved by Bob due to the devaluation is $2200 - $1523 = $677. Thus, Bob benefits from the devaluation by saving approximately 677 U.S. dollars.

Answer 2

Rounded to the nearest dollar, Bob saved $677 by buying the carpet on Wednesday.

Step-by-step explanation:

Since on Tuesday, Bob brought home an oriental carpet on approval and the price in the store was 9900 Turkish Lira, but Bob was going to pay in dollars and, on Tuesday, one dollar was worth 4.5 Turkish Lira but on Wednesday, the Turkish Lira was devalued such that one dollar was now worth 6.5 Turkish Lira, with which Bob then bought the rug on Wednesday, paying the price of 9900 Turkish Lira with dollars at the new rate, to determine to the nearest dollar, how much did he save due to the devaluation the following calculation must be performed:

(9,900 / 4.5) - (9,900 / 6.5) = X

2,200 - 1,523.07 = X

676.92 = X

So, rounded to the nearest dollar, Bob saved $ 677 by buying the carpet on Wednesday.