Question

Merl is a canadian exchange student in china and he currently has 12000 yuan in his bank account. If the exchange rate changes from 1 canadian dollar= 6.78 chinese yuan what happens to the value in canadian dollars of the money in merla bank account

Answer 1

Merl has 12,000 yuan, which if you divide by 6.78, gets you 1769.9115, in money terms is $1,769.91. So he has 1,769.91 Canadian dollars.

Answer 2

Amount of money Merl has 12000 Yuan
but 1 canadian dollar=6.78 chinese yuan
thus converting amount Merl has to dollars we get:
12000/6.78
=$1,769.91
this implies that the value in Canadian dollars will be $1,769.91