Question

9. Last year a dollar was equal to 6 Swedish kronor, and a Polish zloty was equal to $.35. Today, the dollar is equal to 8 Swedish kronor and a Polish zloty is equal to $.44. By what percentage did the cross exchange rate of the Polish zloty in Swedish kronor (that is, the number of kronor that can be purchased with one zloty) change over the last year?

Answer 1

Answer:

67.61% approx.

Explanation:

Last year $1 = 6 Swedish kroner

                1 Polish zloty = $.35

                Cross Rate i.e Swedish Kroner per Polish zloty

= $\frac{Swedish\ Kroner}{US\ Dollar}$ × $\frac{US\ Dollar}{Polish\ Zloty}$ = 6 × 0.35 = 2.1  Swedish Kroner per Polish zloty

As per information today, Cross rate i.e Swedish Kroner per Polish zloty

= 8 × 0.44 = 3.52 Swedish Kroner per Polish zloty

Percentage change over the last year in the exchange rate

= $\frac{new\ rate\ -\ old\ rate}{Old\ Rate}$

=  $\frac{3.52\ -\ 2.1}{2.1}$ = 67.61% change