Asked by Annie

what is the general formula for figuring out this question?

If the dinar devalues against the US dollar by 45%, the US dollar will appreciate against the dinar by...?

I'm not getting this at all, and the book is not helping!!
Answered by economyst
Use simple algebra, and start with an example. Say, initially, 1 dinar = 1 dollar. Then the dinar devalues by 45% so that 1 dinar = .65 dollar. With this, how many dinar's is 1 dollar. Well 1 dollar / .65 = 1.54. So, the dollar appreciated against the dinar by 54%.
Answered by economyst
oops, sorry stupid mistake. if the dinar devalues by 45% that means 1 dinar = .55 dollars. Take it from here.
Answered by Anonymous
The answer above is wrong. the correct answer is 82%