Question

Ryan Lock had planned his trip to the Olympic Games in Rio de​ Janeiro, Brazil, for many months. He had ​budgeted-saved-$15 comma 000 for expenses while in Rio. But he had postponed exchanging the dollars for Brazilian currencylong dashreal ​(BRL or ​R$)long dashuntil the very last minute on August​ 8th, doing it in the airport in the United States at BRL 3.2312equals1.00 USD. Given the following average monthly exchange rates in​ 2016, when should he have exchanged the dollars for real to maximize his Brazilian spending​ money?

Answer 1

Answer:

He should have exchanged the dollars for real in January 2016 to maximize his Brazilian spending​. The exchange rate in January will result to highest Real (BRL) of R$59,463.00

Explanation:

To arrive at R$ equivalent of $15,000 on monthly basis, since  BRL=1.00 USD, multiply R$ exchange rate each month by $15,000.

For January,  3.9642*15,000= R$59,463.00

     February  3.8402*15,000= $57,603.00, etc.

Solution  

S/N Month      BRL=1.00 USD          BRL Equivalent(R$)

1 January              3.9642              59,463.00

2 February            3.8402               57,603.00

3 March                 3.6086               54,129.00

4 April                    3.6851                55,276.50

5 May                     3.5843               53,764.50

6 June                    3.5493               53,239.50

7 July                      3.2331               48,496.50

8 Aug-08                3.2312               48,468.00