# currency exchange problem

• Oct 12th 2005, 05:00 PM
kurtolios
HELP! currency exchange problem
If the Canadian dollar appreciates by C\$0.0017 relative to the pound, what will be the new value for pound per C\$1.00?

Answer is .4333 pounds per C\$1.00

There is a table here, I think the relevant info is:

Per C\$ .4330 pounds

Per pound: 2.30 \$C

hopefully I've given the right information

thanks!
• Oct 13th 2005, 10:09 AM
hemza
Hi,

before the appreciation :
1C\$ -> 0.433 pounds
?C\$-> 1 pound we find : ?=1/0.433 = 2.30947 C\$

after the appreciation the dollar is more valuable then before compared to the pound so we get less dollars for our 1 pound. We get exactly 0.0017 less dollars so

1 pound -> 2.30947 - 0.0017 C\$
so 1 pound -> 2.30777 C\$

but we want

? pounds -> 1C\$ having
1 pound -> 2.30777 C\$ we find : ? = 1/2.30777 = 0.4333 pounds per 1C\$.

Where I used "?" as is my unknown.

How do you see the appreciation? Well appreciation means more money so before 1C\$ gave us 0.433 pounds now it gives 0.4333 becaused it raised in value compared to the pound. It is 0.0003 pounds more.