3
QuizMultiple Choice

Converting Currency

Question 3 • FowU - Financial Math - B

The exchange rate between non-fixed currencies continuously fluctuates. The following chart shows the exchange rate of the pound sterling to the Japanese yen over a period of six days.Day£:¥Monday1:141.014Tuesday1:138.650Wednesday1:149.890Thursday1:144.209Friday1:148.176Saturday1:143.008Tina has £72.90 to turn into yen. How much greater is the amount of yen she would receive if she made her trade on the most favorable day than if she made her trade on the least favorable day? Round to the nearest whole yen.

Answer
A
¥172
B
¥317
C
¥819
D
¥1,104

Explanation

The most favorable day is Wednesday, with ¥149.890 per pound, and the least favorable is Tuesday, with ¥138.650 per pound. The difference is ¥11.240 for each pound, so for £72.90 the difference is 11.240 × 72.90 = ¥819.396. Rounded to the nearest whole yen, that is ¥819, choice C.

AI-written and checked against the verified answer.

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