Exercises 4.

3
Exercise 4.3, Solution 1:

a. US$5000 to Canadian dollars

US$ : C$ = US$ : C$
1:1.3241 = 5000: x
1 5000
=
1.3241 x
x = 6620.50
Therefore, you will receive C$6620.50 for US$5000.
b. £10 to Canadian dollars
£ : C$ = £ : C$
1:1.6274 = 10 : x
1 10
=
1.6274 x
x = 16.274
Therefore, you will receive C$16.27 for £10.
Exercise 4.3, Solution 3:

a. £18 to Swiss francs (CHF)

£: CHF = £: CHF
1: 1.2179 = 18: x
1 18
=
1.2179 x
x=(18)(1.2179)
x = CHF21.9222 = CHF21.92
Therefore, you will receive CHF21.92 for £18.
b. CHF 850,933 to Canadian dollars
CHF: C$ = CHF: C$
1: 1.3363 = 850,935: x
1 850,935
=
1.3363 x
x=(850,935)(1.3363)
x = C$1,137,104.440… = C$1,137,104.44
Therefore, you will receive C$1,137,104.44 for CHF 850,935.
Exercise 4.3, Solution 5:
¥: US$ = ¥: US$
1: 0.0093 = x: 1000
 1 x
=
0.0093 1000
1000
x=
0.0093
x = ¥107,526.881... = ¥107,526.88
C$: ¥ = C$: ¥
1: 81.5378 = y: 107,526.88
1 y
=
81.5378 107,526.88
107,526.88
y=
81.5378
y = C$1318.737...= C$1318.74
Therefore, we would receive C$1318.74 with US$1000.
Exercise 4.3, Solution 7:
If €1=¥120.079

¥1=

¥1= € 0.0083
And if C$1=¥85.191

¥1=
¥1=C$0.0117

? € 0.0071= C$0.0108?

C$1=
C$1=€0.7095
Therefore, the exchange rate is C$1=€0.7095.
Exercise 4.3, Solution 9:
Initially the exchange rate was: C$1 = £$0.6085

x=(280)(0.6085)

The initial value of the printer was £170.38

Exchange rate changed to C$1 = £0.6145
1 280
= x=(280)(0.6145)
0.6145 x
 x=172.06
The difference = £172.06 – 170.38 = £1.68
Therefore, the change in value is £1.68.
Exercise 4.3, Solution 11:
C$: CHF = C$: CHF
1: 0.7484 = 3000: x
1 3000
=
0.7484 x
x=(3000)(0.7484)
x = CHF 2245.2
She spent CHF 1452, therefore, the balance she had is 2245.2 −¿ 1452 = CHF 793.2
She converted this amount to British pounds.
CHF: £ = CHF: £
1: 0.8211 = 793.2: x
1 793.2
=
0.8211 x
x=(793.2)(0.8211)
x = £651.297 = £651.30
She spent £570.34, therefore, the balance she had is 651.30 – 570.34 = £80.96
CHF: £ = CHF: £
1: 0.8211 = x: 80.96
1 x
=
0.8211 80.96
80.96
x=
0.8211
x = CHF 98.59520... = CHF 98.60
Now we can calculate how many C$ she will get for CHF 98.60
C$: CHF = C$: CHF
1: 0.7484 = x: 98.60
1 x
=
0.7484 98.60
98.60
x=
0.7484
x = C$131.74773... = C$131.75
Therefore, when she converted the remaining British£ to Canadian $, she received C$131.75.
Exercise 4.3, Solution 13:
a. Buying cost:
 C$ = (US$ × Exchange rate) × (1 + Commission)
= (1500 × 1.3241) × (1 + 0.025)
= C$2035.80375…= C$2035.80
Therefore, you will have to pay C$2035.80.
b. Commission amount:
US$: C$ = US$: C$
1: 1.3241= 1500: x
1 1500
=
1.3241 x
x=(1500)(1.3241)
x = C$1986.15
Difference = 2035.8 – 1986.15 = C$49.65
Therefore, you would pay them C$49.65 in commissions for the transaction.
Exercise 4.3, Solution 15:
US$: C$ = US$: C$
0.7552: 1 = 100: x
0.7552 100
=
1 x
100
x=
0.7552
x = C$132.4153... = C$132.42
Selling rate = C$ × (1 −¿ Commission)
= C$132.42 × (1 −¿ 0.0025) = C$132.084216…= C$132.08
Therefore, she will receive C$132.08.
Exercise 4.3, Solution 17:
C$: A$ = C$: A$
1: 1.1167 = x: 5000
1 x
=
1.1167 5000
5000
x=
1.1167
x = C$4477.47828... = C$4477.48
Buying cost = C$ × (1 + Commission)
= 4477.48 × (1 + 0.0050) = C$4499.86568 = C$4499.87
He would have to pay C$4499.87 for A$5000.
Selling rate = C$ × (1 −¿ Commission)
= 4477.48 × (1 −¿ 0.0075) = C$4443.89719 = C$4443.90
 Therefore, he would receive C$4443.90 for AUD$5000.
His loss = 4499.87 – 4443.90 = C$55.97 = C$55.97
Therefore, he would lose C$55.97 for converting twice.
Exercise 4.3, Solution 19:
If you want to purchase suppose £1000 from the bank, it will cost you: 1000 × 1.6751 = C$1675.1
£: C$ = £: C$
1: 1. 6274 = 1000: x
1 1000
=
1.6274 x
x=(1000)(1.6274 )
x = C$1627.4
Therefore, the bank’s commission is 1675.1 – 1627.4 = $47.7

47.7
Rate of Commission = = 0.0293106...= 2.93%
1627.4
Therefore, the rate of commission the bank charges is 2.93%.
Exercise 4.3, Solution 21:
The second column shows 1 unit of each currency in terms of Canadian dollars. To compare the two
columns, we need to have 1 Canadian dollar in terms of all other currencies.
Therefore, calculating the reverse exchange rates in column 2,
A$: C$ = A$: C$
1: 0.9725 = x: 1
1 x
=
0.9725 1
x = A$1.02827763…
Therefore, C$1 = A$1. 02827763…
¥: C$ = ¥: C$
1: 0.0117 = x: 1
1 x
=
0.0117 1
x = ¥85.47008547…
Therefore, C$1 = ¥85. 47008547…
CHF: C$ = CHF: C$
1: 1.3318 = x: 1
1 x
=
1.3318 1
 x = CHF 0.75086349…
Therefore, C$1 = CHF 0. 75086349…
Rewriting the comparison table again, we get:
Dec 01, 2016 Dec 01 2018
C$1 = A$1.012824 C$1 = A$1.02827763…
C$1 = ¥85.741232 C$1 = ¥ 85.47008547…
C$1 = CHF 0.759078 C$1 = CHF 0.75086349…

a. As you can purchase more Australian dollars with 1 Canadian dollar on Dec 01 2018, the Canadian dollar
appreciated in value relative to the Australian dollar.
b. As you can purchase fewer Japanese Yen with 1 Canadian dollar on Dec 01 2018, the Canadian dollar
depreciated in value relative to the Japanese Yen.
c. As you can purchase fewer Swiss Franc with 1 Canadian dollar on Dec 01 2018, the Canadian dollar
depreciated in value relative to the Swiss Franc.
Exercise 4.3, Solution 23:
As the value of the Canadian currency depreciated relative to the Peso, the price of the bike would be
higher if he purchased it from Mexico.
Therefore, he would get the bike cheaper from the US.
Exercise 4.3, Solution 25:
Current exchange rate is C$1 = US$0.7552
C$: US$ = 1: 0.7552
1
C$: US$ = :1
0.7552
C$: US$ = 1.3241525…: 1
After US$ depreciated:
C$: US$ = 1.3241525…– 0.0899: 1
C$: US$ = 1.234253: 1
1
C$: US$ = 1:
1.234253
C$: US$ = 1: 0.81020696…
Therefore, the new value of US dollar per Canadian dollar = US$0.8102.
Exercise 4.3, Solution 27:
CHF: C$ = CHF: C$
1: 1.3363 = 850: x
1 850
=
1.3363 x
x=(850)(1.3363)
 x = C$1135.855 = C$1135.86
Adding customs duty, C$1135.86 x 1.10 = 1249.4405
Adding HST, C$1249.4405 x 1.13 = 1411.867765
Therefore, total net amount it would cost is $1411.87.
Exercise 4.3, Solution 29:
As you are given exchange rate of Canadian dollars to Australian dollars, you need to find the reverse of
this.
C$: A$ = C$: A$
1: 1.1167 = x: 15,000
1 x
=
1.1167 15000
15,000
x=
1.1167
x = C$13,432.43485... = C$13,432.43
Adding customs duty, C$13,432.43 x 1.05 = C$14,104.056595
Adding HST, C$14,104.056595 x 1.13 = C$15,937.58
Therefore, the total cost of shipment is C$15,937.58.
Exercise 4.3, Solution 31:
Total amount paid = 900 × 1.3241 × 1.14 = C$1358.5266... = C$1358.53
Adding HST, C$1358.53 x 1.13 = $1535.135058 = $1535.14
Cost in Canada = 1500
Therefore, it was more expensive for her to buy the laptop from the US.