Aggie is an Australian exchange student in China, and she currently has 14,000 yuan in her bank account. If the exchange rate changes from 1 Australian dollar = 6.21 Chinese yuan to 1 Australian dollar = 6.37 Chinese yuan, what happens to the value in Australian dollars of the money in Aggie's bank account?
Accepted Solution
A:
Find the value in Australian dollars for each exchange rate. 1st exchange rate: 14000/6.21= $2254.43
2nd exchange rate: 14000/6.37= $2197.80
Find the difference between the two: $2254.43 - $2197.80 = $56.63
Since the first value is greater than your second one Aggie lost money and your answer is It decreases by $56.63.