In this question, you and your group will estimate by how much, in real terms, freight charges have changed from Montreal to Yokohama, Japan between…

In this question, you and your group will estimate by how much, in real terms, freight charges have changed from Montreal to Yokohama, Japan between 1886 (shortly after the CPR was finished) and 2019.

According to World Freight Rates (accessed on February 23, 2019), shipping 1 ton of wheat from Montreal to Yokohama costs between $1,412.13 and $1,560.66, in Canadian dollars.

An 1886 newspaper on the Canadian Pacific Railway (6.I in the course pack, starting on page 173), gives the following freight rates, in Canadian cents, from Montreal to Yokohama:

·        3/4 cents per mile per ton for the 2,911 miles of railway from Montreal to Port Moody

·         1/4 cents per mile per ton for the 4,714 miles of ocean from Port Moody to Yokohama

a. (2 marks) Calculate the total cost, to the nearest cent, of shipping 1 ton of cargo from Montreal to Yokohama in 1886. Show your work.

Cost in 1886 of shipping 1 ton from Montreal to Yokohama: $ ____________

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