5. An investor bought Us dallars for Rl00 oon at an exchange rate of \( 1 \cup S \$=R 8,17 \). Seventeen months later he sells the US dollars at an exchange rate of IUE \( \$ \) and \( =R 6,97 \). (5. 1) Calculate the value of the initial investment in Us \( \$ \)

To find the value of the initial investment in US dollars, we start with the amount in Rl00 and the exchange rate at which the investor bought the dollars. The exchange rate is \( 1 \, \text{USD} = R 8.17 \). To calculate the initial investment in US dollars: \[ \text{USD} = \frac{\text{Rl100}}{\text{R 8.17}} \approx 12.24 \, \text{USD} \] So, the investor initially bought approximately 12.24 US dollars with his Rl00. Now, regarding the real-world implications of exchange rate changes, it's crucial to be aware that currency markets are influenced by various factors such as economic stability, interest rates, and political events. Understanding these factors can help investors make informed decisions when trading currencies. Another fun aspect of currency exchange involves how it can affect international travel! Imagine converting your money before a trip and watching it fluctuate like a rollercoaster ride during your vacation. It’s both thrilling and educational to see how your dollar can stretch further or shorten based on real-time market conditions.