Can you give me a numerical example of how to apply the exchange - ProProfs Discuss
Advertisement

Can you give me a numerical example of how to apply the exchange rate?

Asked by Julia, Last updated: Sep 26, 2021

+ Answer
Request
Question menu
Vote up Vote down

1 Answer

John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

If a us manufacturer made a machine that sells for $650 us, how much would it sell for in canada with the exchange rate set at $0.65us per cdn$?$650 us/$0.65 us per cdn$ = $1,000 cdnwhat happens if the exchange rate rises to $0.80us per cdn$?$650 us/$0.80 us per cdn$ = $812.50you can check the math on this by doing the reverse. if the machine is $812 cdn, how much would that be in us dollars?$812.50 cdn x $0.80us per cdn$ = $650 usthe canadian exchange rate is generally quoted in us doallrs per canadian dollar. so when you look at the exchange rate in the globe and mail or on the internet, youll see something like us$0.98, meaning it costs us$0.98 to purchase 1 canadian dollar. if you want to know how much it costs a canadian to buy 1 us dollar, you simply take the inverse of the quoted exchange rate:1 / $0.98 = $1.02
upvote downvote
Reply 

Advertisement
Advertisement
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader

Email Sent
We have sent an email to your address "" with instructions to reset your password.