A U.S. firm receives several blds for a piece of specialized testing equipment. A supplier from Japan quotes a price of 360,000 Yen. If the current exchange rate is 90 Yen per U.S. Dollar, what will the price be in U.S.
dollars?
Correct Answer: C
To determine the price in U.S. dollars for the specialized testing equipment quoted at 360,000 Yen with an exchange rate of 90 Yen per U.S. Dollar:
* Understand the exchange rate: 1 USD = 90 Yen.
* Convert the quoted price in Yen to USD: Price in USD=360,000 Yen90 Yen/USD\text{Price in USD} =
\frac{360,000 \text{ Yen}}{90 \text{ Yen/USD}}Price in USD=90 Yen/USD360,000 Yen Price in USD=4,000 USD\text{Price in USD} = 4,000 \text{ USD}Price in USD=4,000 USD Thus, the price in U.S. dollars is $4,000.
References:
* Currency conversion principles.
* Current exchange rates from financial news sources.