Question

President obama announced a $100,000,000 humanitarian aid package to haiti to support its earthquake relief. england's parliament wants to contribute 20% of this amount. if the exchange rate is $1.61371/pound sterling, what is the amount the parliament is likely to allocate?

Answer 1

Answer: The parliament is likely to allocate £ 1,23,93,800.62

We arrive at the answer as follows:

Amount allocated by President Obama $100,000,000

Amount England wants to contribute 20% of President Obama's allocation

Amount England wants to contribute in USD =

`0.2 * 100,000,000 = USD 2,00,00,000`

Exchange Rate $1. 61371/1 pound sterling

We can read the problem as if $1.61371 is equal to 1 pound sterling, how many pound sterlings are equal to $2,00,00,000?

Let number of pound sterlings be x

So,
`(1.61371)/(1)= (100000000)/(x)`

`x = (100000000)/(1.61731)`

`x = 1,23,93,800.62`