International Business: Exchange Rate

International Business
Exchange Rate Examples
Rates table
Country/Currency USD value for 1 unit of another currency
(as of 3/15/16)
Euro(€) 1.124897
Japanese yen(¥) .008847
Swiss franc(₣) 1.030061
One-step examples
Example 1: Convert $3,000 to euros.
Divide the dollar amount by the given euro rate (1.124897).
$3,000 ÷ 1.124897 = €2,666.91
Example 2: Convert $3,000 to yen.
Divide the dollar amount by the given yen rate (.008847).
$3,000 ÷ .008847 = ¥339,098
Example 3: Convert ₣1,500 to U.S. dollars.
Multiply the Swiss franc amount by the given Swiss franc rate (1.030061).
₣1,500 * 1.030061 = $1,545.09
Example 4: Convert €16,000 to U.S. dollars.
Multiply the euro amount by the given euro rate (1.124897).
€16,000 * 1.124897 = $17,998.35
Multiple-step Examples
In some cases, it may take a few steps to calculate the currency since only the most frequently used rates
are provided by financial media. An example would be converting euros to yen. (You do not have to use
this method to complete your assignment if you are familiar with an alternative method.)
Example 5: Convert €3,000 to yen
Step 1: Convert euros to dollars, €3,000 * 1.124897 = $3,374.69
Step 2: Convert dollars to yen, $3,374.69 ÷ .008847 = ¥381,450.32
Example 6: Convert ¥50,000 to Swiss francs.
Step 1: Convert yen to dollars, ¥50,000 * .008847 = $442.35
Step 2: Convert dollars to Swiss francs, $442.35 ÷ 1.030061 = ₣429.44
Practice
Country/Currency USD value for 1 unit of another currency
Euro(€) 1.121303
Japanese yen(¥) .008878
British pound (£) 1.428021
Convert $8,000 into the following currencies:
1. Euros –
2. Yen –
3. Pounds –
Convert the following into U.S. dollars:
4. €1,000 –
5. ¥60,000 –
6. £400 –
Convert the following:
7. €2,000 to pounds
8. ¥70,000 to pounds
Note: Solutions are on the following page.
Solutions
1. €7,134.56
2. ¥901,103.85
3. £5,602.16
4. $1,121.30
5. $532.68
6. $571.21
7. £1,570.43
8. £435.19

Don't use plagiarized sources. Get Your Custom Essay on
International Business: Exchange Rate
Just from $13/Page
Order Essay
ORDER NOW »»

and taste our undisputed quality.