199k views
3 votes
If a U.S. citizen could buy £25,000 for $100,000, the rate of exchange for the pound would be

User Jongware
by
6.1k points

1 Answer

1 vote

Answer:

The rate of exchange for the £ is US$ 4

Step-by-step explanation:

1. Let's check the information provided to answer the question correctly:

Amount the U.S. citizen want to buy in £ = 25,000

Amount the U.S. citizen will pay in US$ = 100,000

2. Let's calculate the rate of exchange for the British pound £, this way:

Rate of exchange = Amount in US$/Amount in £

Rate of exchange = 100,000/25,000

Rate of exchange = 4 US$ per £

We can also express the rate for the US$, this way:

Rate of exchange = Amount in £/Amount in US$

Rate of exchange =25,000/100,000

Rate of exchange = £ 0.25 per US$

User JPro
by
6.4k points