Thomas has just come back from a trip overseas. Four weeks before he departs for America, the exchange rate is R7,14 to the dollar. One week before he departs the exchange rate is R7,52 to the dollar.
a. Thomas exchanged R8 500,00 four weeks before he left, how many dollars did he receive?
b. If Thomas exchanged the same amount of rands one week before departure, how many dollars would he have?
c. How much money would he gain by exchanging his money early?
d. If Thomas buys a pair of pants for $43,95, how many rands would he spend?
Calculate for both exchange rates.
e. Describe what happens to the cost of foreign goods when the exchange rate strengthens against the dollar?