The new exchange rate after depreciation would be:
R1 = $7,09
Depreciation = 10.5%
New exchange rate = R1 * (1 + Depreciation)
= 7.09 * (1 + 0.105)
= 7.09 * 1.105
= 7.83945
Therefore, the new exchange rate after depreciation will be R1 = $7.83945.
The exchange rate of the rands against the dollar is R1= $ 7,09. Assume that rands depreciate by 10,5 against the dollar.
1. Calculate the new exchange rates and show all the calculations
1 answer