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What would the dollar price of the car be now

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Problem - In 1983, the Japanese yen-U.S. dollar exchange rate (USD/JPY) was 245 yen per dollar, and the dollar cost of a compact Japanese-manufactured car was $8,000. Suppose that now the exchange rate is 80 yen per dollar. Assume there has been no inflation in the yen cost of an automobile so that all price changes are due to exchange rate changes. What would the dollar price of the car be now, assuming the car's price changes only with exchange rates?

Reference no: EM132732013

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