Answer:
So the exchange rate is that each dollar is worth 70.4 yens.
Step-by-step explanation:
We have that:
1 euro is priced at $1.25
1 euro will also buy 88 Japanese yen
This also means that:
$1.25 is priced at 88 Japanese yen
How much is the cross rate between the yen and the dollar (yen per dollar exchange rate)?
How much yens is 1 dollar?
This can be solved by a simple rule of three.
$1.25 - 88 yen
$1 - x yen
[tex]1.25x = 88[/tex]
[tex]x = \frac{88}{1.25}[/tex]
[tex]x = 70.4[/tex]
So the exchange rate is that each dollar is worth 70.4 yens.
