You and your family are going to New York City to visit your relatives. You need US $2000 in spending money. Calculate how much that will cost you in Canadian dollars. You have just arrived in New York. In the past week, from the time that you traded your money until today, the Canadian dollar has decreased in value to US $0.9683. Was it better to trade when you did or would it have been better to trade today? Explain. Another week passes, and the Canadian dollar is now down to $0.9601. You want to go to the Six Flags Great Adventure Theme Park but you’ve already spent all your American money. You have CAD $120 in your pocket and the trip costs US $100, including park admission, transportation, and lunch. Do you have enough money to go? Show your work. Before you leave, your cousin Ben asks you to send him 50 bags of ketchup chips because they do not sell them in the United States. The Canadian dollar is now down to US $0.9444. Each bag of chips costs CAD $2.50. How much money will Ben have to exchange, in US$, to buy the chips? Is the decreasing value of the Canadian dollar over the past few weeks good for Ben’s purchase? Explain.
You and your family are going to New York City to visit your relatives. You need US $2000 in spending money. Calculate how much that will cost you in Canadian dollars. You have just arrived in New York. In the past week, from the time that you traded your money until today, the Canadian dollar has decreased in value to US $0.9683. Was it better to trade when you did or would it have been better to trade today? Explain. Another week passes, and the Canadian dollar is now down to $0.9601. You want to go to the Six Flags Great Adventure Theme Park but you’ve already spent all your American money. You have CAD $120 in your pocket and the trip costs US $100, including park admission, transportation, and lunch. Do you have enough money to go? Show your work. Before you leave, your cousin Ben asks you to send him 50 bags of ketchup chips because they do not sell them in the United States. The Canadian dollar is now down to US $0.9444. Each bag of chips costs CAD $2.50. How much money will Ben have to exchange, in US$, to buy the chips? Is the decreasing value of the Canadian dollar over the past few weeks good for Ben’s purchase? Explain.
Value-of-a-Loonie.docx