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Currency Exchange for Travelers

You have been invited by a friend to visit them in Osaka, Japan. You have 450,000 Russian rubles left from your travels. To prepare for the trip, you look up current exchange rates and find that the ruble to US dollar rate is 30.96 rubles per dollar, and the yen to dollar rate is 84.02 yen per dollar. Using these rates, you calculate that the ruble to yen exchange rate is 2.71 rubles per yen. Exchanging your 450,000 rubles at this rate will give you approximately 1,221,177 Japanese yen.

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39 views1 page

Currency Exchange for Travelers

You have been invited by a friend to visit them in Osaka, Japan. You have 450,000 Russian rubles left from your travels. To prepare for the trip, you look up current exchange rates and find that the ruble to US dollar rate is 30.96 rubles per dollar, and the yen to dollar rate is 84.02 yen per dollar. Using these rates, you calculate that the ruble to yen exchange rate is 2.71 rubles per yen. Exchanging your 450,000 rubles at this rate will give you approximately 1,221,177 Japanese yen.

Uploaded by

Samer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Problem 5.

4 Jumping to Japan

After spending a week in Moscow you get an email from your friend in Japan.
He can get you a really good deal on a plane ticket and wants you to meet him in
Osaka next week to continue your post-graduation celebratory trip. You have
450,000 rubles left in your money pouch. In preparation for the trip you want to
exchange your Russian rubles for Japanese yen so you get the following quotes:

Spot rate on the rubles/dollar cross rate Rbl 30.96/$


Spot rate on the yen/dollar cross rate ¥84.02/$

a. What is the Russian ruble/euro cross rate?


b. How many rubles will you obtain for your euros?

Assumptions Values
Beginning your trip with rubles 450,000.00
Spot rate (Rubles/$) 30.96
Spot rate (¥/$) 84.02

a) What is the Russian ruble/euro cross rate?


Cross rate (Rubles/¥) 2.71

Rubles/¥ = ¥/$ ÷ Rubles/$

b) How many rubles will you obtain for your euros?


Converting your Rubles into yen 1,221,177

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