need economics help question

Economics
Tutor: None Selected Time limit: 1 Day

1.     A Canadian wheat farmer wants to buy a tractor in the United States. The tractor costs $100,000. In the fall of 2005, the CAD/USD (Canadian dollars to U.S. dollars) exchange rate was 1.2. In the spring of 2006, the exchange rate was 1.15. In which year would the farmer pay the least amount of Canadian dollars to buy the tractor?

May 12th, 2015

In spring 2006 the farmer would pay the least amount of Canadian dollars.

Explanation:  In Fall 2005, farmer would pay 100,000  x. 1.2. =. 120,000 Canadian dollars

                      In spring 2006, farmer would pay. 100,000 x 1.15 = 115,000 Canadian dollars

May 12th, 2015

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