The following table shows an exchange rate table.
| | Exchange Rate April 3, 2013 (Euro = 1) |
| :---- | :--------------------------------------- |
| Lev | 1.96 |
| Dollar| 1.301 |
| Franc | 1.2149 |
| Pound | 0.8482 |
| Yen | 119.4065 |
If you lived in Great Britain and wanted to buy one euro, how much would it cost?
A. less than a pound
B. more than a pound
C. exactly one pound
D. about eight pounds
Answer (2)
Determine the exchange rate: 0.8482 Pounds = 1 Euro.
Calculate the reciprocal to find the cost of 1 Euro in Pounds: 0.8482 1 ≈ 1.179 .
Compare the result to one pound.
Conclude that it would cost m ore t hana p o u n d to buy one euro.
Explanation
Understanding the Problem We are given an exchange rate table where 1 Euro = 0.8482 British Pounds. We want to find out how many British Pounds it would cost to buy 1 Euro.
Setting up the Calculation From the table, we know that 0.8482 Pounds is equivalent to 1 Euro. To find the cost of 1 Euro in British Pounds, we need to calculate the reciprocal of the exchange rate, which is 0.8482 1 .
Performing the Calculation Calculating the value, we get 0.8482 1 ≈ 1.178967 .
Determining the Answer Since 1.178967 is greater than 1, it would cost more than one pound to buy one euro.
Examples
Exchange rates are used daily when people travel or conduct international business. For example, if a British company needs to pay a bill of 1000 euros, they would need to convert that amount into British pounds using the current exchange rate. Understanding exchange rates helps businesses and individuals make informed decisions about international transactions and budgeting.
It would cost more than a pound to buy one euro, as the exchange rate indicates that approximately 0.8482 pounds equals 1 euro. The calculation shows that the cost is around 1.1789 pounds. Therefore, the answer is option B.
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