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3 Suppose the exchange rate is 1 = R16.53. a) How many US dollars would you get if you convert R14 800? b) A laptop costs 820. If the exchange rate is $1 = R19.80, what is the price in rands? c) Expla
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Step-by-step solution
5 stepsHere are the solutions to question 1.3:
Part a· 3 steps
Identify the amount in Rands and the exchange rate.
The amount to convert is R14 800.
The exchange rate given in the note is .Convert Rands to US Dollars.
To convert Rands to Dollars, divide the Rand amount by the exchange rate.
Round the answer to two decimal places for currency.
The converted amount is
\boxed{\text{ \895.34 }}$.
Part b· 2 steps
Identify the price of the laptop in USD and the new exchange rate.
The price of the laptop is 1 = \text{R}19.80$.
Convert US Dollars to Rands.
To convert Dollars to Rands, multiply the Dollar amount by the exchange rate.
The price of the laptop in South African Rand is .
Part c
A weak rand means that one US Dollar (or other foreign currency) can buy more Rands. This makes imported goods more expensive for South African consumers because they need to spend more Rands to purchase the same amount of foreign currency required to buy the imported items. This reduces their purchasing power for goods from other countries.
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