Convert currency - yen to dollar

G

gmblng

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Hi! Can anyone help me complete this problem -

In 1983, the exchange rate was 245Yen to $1.00. Given a 2002 exchange rate of 121Yen to $1.00, what would be the 2002 price of a $9,000 automobile?

I figured out that 245Yen divided by 2 is 122.5Yen. So I doubled the $9,000 price of the car. I know it costs at least $18,000 is 2002.

The difference between 122.5Yen and the 2002 exchange rate of 121Yen is 1.5 Yen. the answer to the problem is supposed to be $18,223 and I don't know how that $223 was acquired. I don' t know how to convert that 1.5 Yen into dollars. I'm sure it is not that difficult but I am missing the forest for the trees right now.

Please help!
 
If they're asking you to convert a 2002 price, I'm not sure why you'd be using the 1983 conversion rate...? And, if the car costs $9000, why do you say that it actually costs "at least $18,000"? Where are "$223" and "122.5 yen" coming from?

You have the ratio, (yen)/(dollars) = 121/1. Set up the proportion:

. . . . .121/1 = p/9000

...and solve for the yen-price "p".

Eliz.
 
The answer in the book is $18,223.00. What I did was I knew that the Yen increased in value against the dollar; it was 245Y in 1983 and 121Y in 2002. Well, 121 is a little less than HALF of 245. So that tells me that my 1983 $9,000 car at least doubled to $18,000 in 2002. And the answer supports that part.

"Assume that the car's price changes with the exchange rate" - sorry left that out before.

What I can't figure out is where the $223.00 is coming from.
I tried your equation and I'm getting P1 = 121(9000) which equals 1,089,000.
 
You can't figure it is "about 2" then get an exact answer.
(245/121)*9000=exactly $18,223.14
----------------
Gene

PS. Staple was changing $9000 into the old price in yen.
 
thanks to both of you. I knew this was not a difficult problem, but I was getting frozen on the conversions. I appreciate your help.
 
Gene said:
PS. stapel was changing $9000 into the old price in yen.
Click to expand...
Were they asking for the 2002 dollarized price of a 1983 car? I'd wondered what the "1983" info was for....

Eliz.
 
Yes they were. They wanted the $9000 1983 price converted to a 2002 price, assuming the price of the car changed with the fluctuation of the Yen. THe yen went down so I knew the price was going to go up.

Thanks for your help.
 
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