Answer:
The correct option is A
Explanation:
When a currency depreciates it means it loses its value.
For the yen to depreciate by 8% it means that a dollar will buy more yen than it did today. by tomorrow. So, to calculate it we times the current price of the yen by the depreciation factor
144×0.8= 11.52
adding the depreciation factor to the current price of the yen
144+11.52=155.52
so by tomorrow $1=155.5yen
Answer:
(c) 133.5 yen
Explanation:
Today's foreign exchange rate: $1 can buy 144 yen
If the yen depreciates by 8% tomorrow, the value of the yen would decrease by (0.08×144 = 11.52 yen)
Therefore, tomorrow $1 could buy 132.48 yen (144 yen - 11.52 yen = 132.48 yen)
The closest option is (c)
