Paula Smith bought a computer tablet for 400 shekels in Israel. Using the WSJ currency table on page 78, what is this price in U.S. dollars? LU 3-2(2)
The Correct Answer and Explanation is :
To answer this question, I would need to reference the current exchange rate for the Israeli Shekel (ILS) to the U.S. Dollar (USD). Since I do not have access to the exact WSJ currency table on page 78 as it is a specific resource, I can still explain the process and how to convert the price from Israeli Shekels to U.S. Dollars using the exchange rate from that table.
Here’s how to perform the conversion:
- Identify the exchange rate: In the WSJ currency table, look for the current exchange rate between Israeli Shekels (ILS) and U.S. Dollars (USD). This rate tells you how many shekels are equal to one U.S. dollar. For example, if the exchange rate is 3.5 ILS = 1 USD, it means that 1 U.S. dollar is worth 3.5 shekels.
- Use the exchange rate to convert the price: Once you have the exchange rate, you can convert the price of the tablet into U.S. dollars by dividing the price in shekels by the exchange rate.
- For example, if the tablet costs 400 shekels and the exchange rate is 3.5 ILS = 1 USD: [
\text{Price in USD} = \frac{400 \, \text{ILS}}{3.5 \, \text{ILS/USD}} = 114.29 \, \text{USD}
]
- Final answer: The price of the tablet in U.S. dollars would be approximately $114.29.
Explanation of the Process:
- Currency Exchange Rates: Exchange rates are the value of one country’s currency in relation to another’s. These rates fluctuate based on market conditions, such as inflation, interest rates, and economic stability. In this example, to convert from shekels to U.S. dollars, we divide the price in shekels by the exchange rate, as explained above.
- Why exchange rates matter: When buying products abroad, it’s important to understand the exchange rate because it affects the actual cost of goods. If the shekel is strong relative to the dollar, the price in dollars will be lower; if the shekel is weak, the price in dollars will be higher.
This approach can be applied to any product purchased in a foreign currency by using the appropriate exchange rate.