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dollars is $550,000,000 c. Show how your answer in (b) would change if one US dollar could be exchanged

dollars is $550,000,000 c. Show how your answer in (b) would change if one US dollar could be exchanged

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please answer part c questions. Part a and b has been answered.
12.A country in Southeast Asia states its gross domestic product in terms of yen. Last year its GDP was 50 billion yen when one U.S. dollar could be exchanged into 120 yen. a. Determine the country's GDP in terms of U.S. dollars for last year. Calculation of GDP of last year in terms of US D Given: b. GDP of Southeast Asia = 50 billion Yen or 50,000,000,000 Yen I USD = 120 Yen 1 Yen = 1/120 USD Calculation of country's GDP in terms of USD GDP of Southeast Asia = (50,000,000,000 x 1/120) USD = 41,66,66,666 67 US D Assume the GDP increases to 55 billion yen for this year. However, the dollar value of one yen is now $0.01. Determine the country's GDP in terms of U.S. dollars for this year. For last year: The exchange rate between country U's dollar and yen is $1 = 120 yen Or 1 yen = $1/120 = $0.0083 This value of 1 yen = $0.0083 can be used to compute the GDP of the south Asian nation in terms of country U's dollar 1 yen = $0.0083 Or, 50 billion yen = $0.0083 x 50 billion = $0.415 billion =$415,000,000 So last year, the GDP of the south Asian nation in terms of country U's dollar is $415,000,000 For this year: The GDP of the south Asian nation = $55 billion yen and, the exchange RATE IS 1 YEN = $0.01 value of 55 billion yen = $0.01 x 55 billion = $0.55 billion = $550,000,000 Thus, for this year, the south Asian country's GDP in terms of country U's dollars is $550,000,000 Thus, for this year, the south Asian nations' GDP in terms of country U's dollars is $550,000,000 c. Show how your answer in (b) would change if one US. dollar could be exchanged for 110 yen
Transcribed Image Text:12.A country in Southeast Asia states its gross domestic product in terms of yen. Last year its GDP was 50 billion yen when one U.S. dollar could be exchanged into 120 yen. a. Determine the country's GDP in terms of U.S. dollars for last year. Calculation of GDP of last year in terms of US D Given: b. GDP of Southeast Asia = 50 billion Yen or 50,000,000,000 Yen I USD = 120 Yen 1 Yen = 1/120 USD Calculation of country's GDP in terms of USD GDP of Southeast Asia = (50,000,000,000 x 1/120) USD = 41,66,66,666 67 US D Assume the GDP increases to 55 billion yen for this year. However, the dollar value of one yen is now $0.01. Determine the country's GDP in terms of U.S. dollars for this year. For last year: The exchange rate between country U's dollar and yen is $1 = 120 yen Or 1 yen = $1/120 = $0.0083 This value of 1 yen = $0.0083 can be used to compute the GDP of the south Asian nation in terms of country U's dollar 1 yen = $0.0083 Or, 50 billion yen = $0.0083 x 50 billion = $0.415 billion =$415,000,000 So last year, the GDP of the south Asian nation in terms of country U's dollar is $415,000,000 For this year: The GDP of the south Asian nation = $55 billion yen and, the exchange RATE IS 1 YEN = $0.01 value of 55 billion yen = $0.01 x 55 billion = $0.55 billion = $550,000,000 Thus, for this year, the south Asian country's GDP in terms of country U's dollars is $550,000,000 Thus, for this year, the south Asian nations' GDP in terms of country U's dollars is $550,000,000 c. Show how your answer in (b) would change if one US. dollar could be exchanged for 110 yen
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