Suppose that you are planning to study abroad in Mexico for a semester. In planning for your

Question:

Suppose that you are planning to study abroad in Mexico for a semester. In planning for your trip, you calculate what you spend in a semester in the United States. Then you check to see what the current is.
a. If you spend $2,000 per semester on food, entertainment, and other incidental expenses in Mexico, and if the current is $1 = 12 pesos, how many pesos do you need if your expenses are identical?
b. Assuming that you consume the same amount of food and other goods no matter where you are in Mexico, do you think that this method will correctly calculate the number of pesos you need for your trip? Briefly explain.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...