The Depreciation of Euro Value: A Calculative Journey

What was the value of euro last week?

The value of euro last week was $1.30. During last week, the euro depreciated by 5%. What is the value of euro today?

Answer:

The value of the euro today is $1.235, which is option (b) in the given choices.

To find the value of the euro today, we need to first calculate the amount by which it has depreciated after the 5% decrease. We can do this by multiplying the original value of the euro by the percentage decrease:

5% of $1.30 = 0.05 x $1.30 = $0.065

This means that the euro decreased in value by $0.065. To find the value of the euro today, we need to subtract this amount from the original value:

$1.30 - $0.065 = $1.235

Therefore, the value of the euro today is $1.235, which is option (b) in the given choices.

Depreciation of currency value is an important concept in economics and finance. It measures the decrease in value of a currency relative to another currency or a standard. Understanding how to calculate such depreciation is essential for investors, traders, and policymakers to make informed decisions.