Question

Your best friend is getting ready to study abroad and has the opportunity to exchange $1 US dollar for .9025 euro or .7205 British pounds. Calculate for your friend the cross-rate to express pounds per euro?

Answer 1

The cross-rate to express pounds per euro is 0.7981 pounds per euro, obtained by dividing the pound-to-dollar rate by the euro-to-dollar rate.

Step-by-step explanation:

To calculate the cross-rate to express pounds per euro, we will use the given exchange rates: $1 US dollar = 0.9025 euro and $1 US dollar = 0.7205 British pounds. To find out how many pounds you get for one euro, we divide the pound rate by the euro rate. So, the calculation would be: 0.7205 pounds / 0.9025 euro = 0.7981 pounds per euro.

To calculate the cross-rate to express pounds per euro, we need to compare the exchange rates for euros and pounds with respect to the US dollar. Given that 1 US dollar is equivalent to 0.9025 euros and 0.7205 pounds, we can calculate the cross-rate by dividing the exchange rate for pounds by the exchange rate for euros. Therefore, the cross-rate to express pounds per euro is approximately 0.7998 pounds per euro.