Step-by-step explanation:
Amount in Aggie bank account = 14,000 yuan
Initial exchange rate:
1 Australian dollar = 6.21 yuan
Initial amount in Australian dollars will be;
x aus dollar = 14,000 yuan
cross multiply
6.21x = 14,000
x = 14,000/6.21
x = 2,254.428 australian dollars
If the exchange rate increases to 6.37 Chinese yuan, her new balance in Australian dollars will be y;
1 Australian dollar = 6.37 yuan
y Australian dollar = 14,000 yuan
cross multiply
6.37y = 14,000
x = 14,000/6.37
y = 2,197.80 Australian dollars
The change in her account balance due to increase in exchange rate is y-x
y-x = 2,197.80 - 2,254.428
y-x = -56.626 aus dollars
This negative values shows a decrease in her account balance by 56.626 aus dollars due to increase in the exchange rate.
