Answer: 1.5152
The ratio of the exchange rate of the dollar to Swiss franc is .60:1. It means that .60 dollar can buy 1 Swiss francs. If the franc appreciates by 10% against a dollar by tomorrow, then the number of francs a dollar can buy is:
You need 10% more USD to buy one appreciated Swiss franc.
The previous ratio is .60:1
When franc appreciates by 10% against the dollar, the ratio becomes (0.6+.10(,6):1 or .66:1
To get the number of francs (X) a dollar can now buy, we use the following equation
.66:1=1:X
.66X=1
X=1/.66
X= 1.515152 or 1.5152
