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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

Mathematics

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Here are the solutions to question 1.3:

Part a· 3 steps

  1. Identify the amount in Rands and the exchange rate.

    The amount to convert is R14 800.
    The exchange rate given in the note is 1=R16.531 = \text{R}16.53.

  2. Convert Rands to US Dollars.

    To convert Rands to Dollars, divide the Rand amount by the exchange rate.

    USD=R14 800R16.53/USD\text{USD} = \frac{\text{R}14\,800}{\text{R}16.53/\text{USD}} USD=895.3418...\text{USD} = 895.3418...
  3. Round the answer to two decimal places for currency.

    USD≈$895.34\text{USD} \approx \text{\$895.34} The converted amount is \boxed{\text{ \895.34 }}$.

Part b· 2 steps

  1. Identify the price of the laptop in USD and the new exchange rate.

    The price of the laptop is 820.Theexchangerategivenforthispartis820. The exchange rate given for this part is 1 = \text{R}19.80$.

  2. Convert US Dollars to Rands.

    To convert Dollars to Rands, multiply the Dollar amount by the exchange rate. Rand price=$820×R19.80/USD\text{Rand price} = \text{\$820} \times \text{R}19.80/\text{USD}

    Rand price=R16 236.00\text{Rand price} = \text{R}16\,236.00

    The price of the laptop in South African Rand is  R16 236.00 \boxed{\text{ R16 236.00 }}.

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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