economics help confused

Economics
Tutor: None Selected Time limit: 1 Day

1.     Two college students went to Guadalajara, Mexico, on their spring breaks. One took the vacation in 2002, while the other went in 2006. Each student had $500 to spend. In 2002, the exchange rate of MXN/USD (Mexican pesos to U.S. dollars) was 9. In 2006, the exchange rate was 11. A hotel room in Guadalajara cost 200 pesos per night in 2002 and 220 pesos in 2006. If each student spent five nights in a hotel, which student had more pesos left over? Exactly how many did that student have?  

May 12th, 2015

Assuming that the two students converted all their money to pesos, the first thing we need to do is calculate the initial amount of pesos for each student. The exchange rate is the amount of units of currency that equal a unit of another currency, so it says in 2002 the exchange rate was 9, so multiply 500 by 9 to get 4500 pesos. in 2006 the rate was 11 so multiply 500 by 11 to get 5500 pesos. Each student spends 5 nights. The cost per night in 2002 is 200, so 200 times 5 is 1000 pesos spent. Subtract that from 4500 to get 3500 pesos left for the 2002 student. In 2006 the room per night cost was 220 pesos, so multiply 220 by 5 to get 1100 pesos spent. Subtract that from 5500 to get 4400 pesos left. So the 2006 student had the most pesos left with 4400 pesos. Hope this helps. Let me know if you have any questions

May 12th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
May 12th, 2015
...
May 12th, 2015
Dec 7th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer