Question

Ryan Lock had planned his trip to the Olympic Games in Rio de​ Janeiro, Brazil, for many months. He had ​budgeted-saved-$15 comma 000 for expenses while in Rio. But he had postponed exchanging the dollars for Brazilian currencylong dashreal ​(BRL or ​R$)long dashuntil the very last minute on August​ 8th, doing it in the airport in the United States at BRL 3.2312equals1.00 USD. Given the following average monthly exchange rates in​ 2016, when should he have exchanged the dollars for real to maximize his Brazilian spending​ money?

Answer 1

He should have exchanged the dollars for real in January 2016 to maximize his Brazilian spending​. The exchange rate in January will result to highest Real (BRL) of R$59,463.00

Step-by-step explanation:

To arrive at R$ equivalent of $15,000 on monthly basis, since BRL=1.00 USD, multiply R$ exchange rate each month by $15,000.

For January, 3.9642*15,000= R$59,463.00

February 3.8402*15,000= $57,603.00, etc.

Solution

S/N Month BRL=1.00 USD BRL Equivalent(R$)

1 January 3.9642 59,463.00

2 February 3.8402 57,603.00

3 March 3.6086 54,129.00

4 April 3.6851 55,276.50

5 May 3.5843 53,764.50

6 June 3.5493 53,239.50

7 July 3.2331 48,496.50

8 Aug-08 3.2312 48,468.00