Thread: 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!

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.