1. Use the table below to answer the following questions. Exchange Rate Quotations Foreign Currency Units...

 

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1. Use the table below to answer the following questions. Exchange Rate Quotations Foreign Currency Units per U.S. dollar Country Currency June 30, 2010 June 30, 2005 (currency) Symbol Brazil (real) BRL 1.7973 2.3555 China (yuan) Y (CNY) 6.8086 8.2865 Mexico (peso) MXN 12.8355 10.7630 You and a friend Yi are considering a summer vacation to one of two locales, Mexico or Brazil. Mexico's currency unit is the Mexican peso and the real is used in Brazil. You live in the United States and Yi lives in China. The cost of the hotel is denominated in local currency units. You and Yi are trying to choose the locale with the lowvest hotel expenses. The price of a hotel room is 200 reals per night in Brazil and 800 pesos per night in Mexico. Assume these prices remain unchanged between 2005 and 201o. a. Calculate the U.S. dollar price of a hotel room in Brazil and in Mexico for June 2005. Calculate these prices for 2010. Based on your answers, where would you spend your vacation in June 2005? In June 2010? b. For June 2005 and June 2010, calculate the following: Real-vuan exchange rate, Eeat sn Peso yuan exchange rate. A 1. Use the table below to answer the following questions. Exchange Rate Quotations Foreign Currency Units per U.S. dollar Country Currency June 30, 2010 June 30, 2005 (currency) Symbol Brazil (real) BRL 1.7973 2.3555 China (yuan) Y (CNY) 6.8086 8.2865 Mexico (peso) MXN 12.8355 10.7630 You and a friend Yi are considering a summer vacation to one of two locales, Mexico or Brazil. Mexico's currency unit is the Mexican peso and the real is used in Brazil. You live in the United States and Yi lives in China. The cost of the hotel is denominated in local currency units. You and Yi are trying to choose the locale with the lowvest hotel expenses. The price of a hotel room is 200 reals per night in Brazil and 800 pesos per night in Mexico. Assume these prices remain unchanged between 2005 and 201o. a. Calculate the U.S. dollar price of a hotel room in Brazil and in Mexico for June 2005. Calculate these prices for 2010. Based on your answers, where would you spend your vacation in June 2005? In June 2010? b. For June 2005 and June 2010, calculate the following: Real-vuan exchange rate, Eeat sn Peso yuan exchange rate. A

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a The US dollar price of hotel rooms in June 2010 Brazil 200 ... View the full answer