Question

The exchange rate for the yuan is quoted at 6.58 to the us$ if this changes to 6.25 yuan, what would be the change in price

Answer 1

In order to obtain the change in price, the local price of the yuan must be known. Next is to take the difference of the reciprocal of the two prices, then multiply it to the local price. The solution is: change in price = 275 (1/ 6.58 - 1/6.25) therefore, the change in price is equal to $2.21