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!!
3 answers
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%.
oops, sorry stupid mistake. if the dinar devalues by 45% that means 1 dinar = .55 dollars. Take it from here.
The answer above is wrong. the correct answer is 82%