Movements in CrossExchange Rates Last year a dollar was equa

Movements in Cross-Exchange Rates. Last year a dollar was equal to 7 Swedish kronor, and a Polish zloty was equal to $.40. Today, the dollar is equal to 8 Swedish kronor, and a Polish zloty is equal to $.44. By what percentage did the cross-exchange rate of the Polish zloty in Swedish kronor (that is, the number of kronor that can be purchased with one zloty) change over the last year?

Solution

Answer:

Last year

1 $ = 7 SK => 7SK/$

1 PZ = 0.4 $ => 0.4$/PZ

So the rate between : SK/PZ = SZ/$ * $/PZ = 7 * 0.4 = 2.8 SK/PZ

Now:

1 $ = 8 SK => 8 SK/$

1 PZ = 0.44 $ => 0.44 $/PZ

So the rate between : SK/PZ = SZ/$ * $/PZ = 8 * 0.44 = 3.52 SK/PZ

Percentage change in the cross exchange rate = {(3.52 - 2.8)/2.8}*100 = 25.71% (ans)