Kelvin wants to make a budget for his trip to japan, and he needs to calculate how many yen he can buy. the table shows the exchange rates for us dollars with respect to other countries’ currencies. at the current exchange rate, how many yen can kelvin buy with $200?

currency exchange rate
euro 0.90
british pound 0.64
indian rupee 65.46
japanese yen 124.37

a. 1,800.00 yen
b. 8,234.00 yen
c. 13,086.09 yen
d. 24,874.00 yen

The fourth answer is correct (D).

The exchange rate measures the value of one currency in relation to another currency and is influenced daily by movements in the financial market and eventually by the government itself. A valued exchange rate, like the dollar, buys more currency from another country.

This is not the case in Japan, because the Yen is a currency that is devalued, that is, it takes a high value to buy the dollar. In the example, it takes 124.37 yens to buy 1 dollar.

Thus, to buy $ 200 dollars are needed: 124.37 yens x 200 = 24,874.00 yens

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