Question

Zara can exchange dollars ($) for pounds (£) at the rate $1 = £0.64. She can exchange dollars ($) for euros (€) at the rate $1 = €0.78. Complete the statement to show the exchange rate between pounds and euros. Exchange rate £1 = €............​

Answer 1

Using the given exchange rates, £1 is equivalent to €1.21875. This calculation is based on the proportional values of the pound and euro against the dollar. Exchange rates are subject to rapid changes, influencing international business profits significantly.

Step-by-step explanation:

To calculate the exchange rate from pounds (£) to euros (€), we need to use the given exchange rates from dollars ($) to the other currencies. We have $1 = £0.64 and $1 = €0.78. To find out how many euros are equivalent to one pound, we can set up a ratio using these exchange rates:

£1 = $1/£0.64

€1 = $1/€0.78

To find the exchange rate from pounds to euros, we divide the euro exchange rate by the pound exchange rate:

(€1/$1) / (£1/$1) = (€0.78) / (£0.64).

By performing the division, we get:

£1 = €1.21875

So, the complete statement with the exchange rate between pounds and euros is Exchange rate £1 = €1.21875.

Exchange rates can indeed change very swiftly, as history has shown with the Brexit vote's impact on the pound or the rise and fall of the euro against the U.S. dollar. Such fluctuations have enormous effects on profits for firms engaged in international buying, selling, lending, and borrowing.

Answer 2

£1 = €1.21875

Step-by-step explanation:

We have the following exchange rates

$1 = £0.64

and

$1 = €0.78

Equating the two values on the right side since they both convert to $1 gives us

£0.64 = €0.78

Divide both sides by 0.64 to see how much a pound is worth when converted to euros

0.64/0.64 = 0.78/0.64

£1 = €1.21875