# Chapter 1 - Problems - Page 20: 35

The value of the dollar decreased by 12.4% over the first year.

#### Work Step by Step

We can find the value of $\$$1 in 2006: \1 = \frac{1}{1.27}~Euro We can find the value of \$$1 in 2007:$\$1 = \frac{1}{1.45}~Euro$ Let $x$ be the decrease in the value of the dollar: $\frac{1}{1.27}(1-x) = \frac{1}{1.45}$ $\frac{1}{1.27}~x = \frac{1}{1.27}- \frac{1}{1.45}$ $x = \frac{1.27}{1.27}- \frac{1.27}{1.45}$ $x = 0.124 = \frac{12.4}{100} = 12.4\%$ The value of the dollar decreased by 12.4% over the first year.

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