The Mathematics of Money

480 Chapter 11 International Business

c. C$7,525 (Canadian dollars) into Venezuelan bolivars

d. €21.95 (European euros) into South Korean won

e. 735,960 Thai baht into Malaysian ringgit

D. Retail Foreign Currency Transactions

11. Globetrottin’ Dave’s Eclectic Currency Universe offers to buy and sell a number of currencies for U.S. dollars. His
    current rates are posted:

Country Currency Buy Sell

Japan Yen 0.00875 0.00919

European Union Euro 1.186 1.253

U.K. Pound 1.645 1.793

Canada Dollar 0.7915 0.8508

Mexico Peso 0.3416 0.3885

Australia Dollar 0.6525 0.7303

Are the rates Dave is posting “US$ Equivalent” rates, or “Currency per US$”?

12. Using the table given in Exercise 11, what would you get at Globetrottin’ Dave’s for each of the following exchanges?

a. Exchange £300 (British pounds) for U.S. dollars

b. Exchange ¥20,000 (Japanese yen) for U.S. dollars

c. Exchange US$200 for Australian dollars

d. Exchange C$550 (Canadian dollars) for U.S. dollars

e. Exchange US$750 for Mexican pesos

13. Using the table given in Exercise 11, what would you get at Dave’s for each of the following exchanges?

a. Exchange A$275 (Australian dollars) for U.S. dollars

b. Exchange US$475 for euros

c. Exchange US$150 for Japanese yen

d. Exchange €255.75 (euros) for U.S. dollars

14. Sam’s local bank will exchange U.S. dollars and Mexican pesos. According to a sign in the lobby, the bank’s current
    exchange rate is “Buy 11.00, Sell 10.50.”

a. Is this the “Currency per US$” or the “US$ Equivalent” rate?

b. How much would Sam get at this bank if he converted US$100 into Mexican pesos?

c. How much would Sam get at this bank if he converted 500 Mexican pesos into U.S. dollars?

E. Exchange Rates as Percents

15. A sign in a shop in Toronto advertises “U.S. Exchange rate 20%.” I went in and bought an Argos T-shirt for a total price
    of C$27.17, but I paid in U.S. funds. How much did I pay for the shirt?