Saturday, November 17, 2012

Exchange Problem

I'm taking the family to Japan over Thanksgiving.  I spent about 9 months in Iwakuni, Japan back in the early 1990s during my time in the US Marine Corps.  Iwakuni is a small town about 25 miles south of Hiroshima.  If all goes well, I take the kids to see firsthand what an atomic bomb can do to a city.  (Do you think the A-Bomb was a silver lining for the Japanese economy?)

However, before we go, I'll want to get some Japanese Yen.  Fortunately, Seoul has no shortage of money exchangers.  Here's the situation: I gave the money exchanger $300 and asked for Yen.  I was given 24,400 Yen and 3,500 Korean Won.  Apparently, the smallest Japanese Yen bill they deal with is 100 Yen.

Here's your homework.  At 1 USD to 1,088 Won, what was the USD to YEN exchange rate I received?  (I want to know how much Yen $1 buys)

1 comment:

  1. I no math genius, but here goes: With the Won to USD exchange rate of 1,088, I got $3.22 in Won, leaving me with $296.78. Exchanging this amount for 24,400 Yen gives me an exchange rate of abut 82 Yen to USD. That's a poor rate.

    Back in 1990, the rate was more like 120 Yen to 1 USD.

    Here's a question for Prof J: why did the Yen strengthen (~30%) relative to the USD?