Motho Mobe completed his studies from a TVET college in the year 2023. He wants to go and work in the USA. He much have R20000 in his bank account before he can travel. He asked his parents to assist him with the money
Use the following exchange rates to answer the questions that follow
$1=21.60. £1=26.10
A month later, rand weakens by 5% against the US Dollar. Calculate the new exchange rate (show all calculations)
To calculate the new exchange rate after the rand weakens by 5% against the US Dollar, we need to first calculate what the original exchange rate was.
Original exchange rate:
$1 = R21.60
5% weakening of the rand against the US Dollar:
5% of R21.60 = 0.05 * 21.60 = R1.08
New exchange rate:
Original exchange rate + weakening amount
R21.60 + R1.08 = R22.68
Therefore, the new exchange rate after the rand weakens by 5% against the US Dollar is $1 = R22.68.