Question

One day on the New York Currency Exchange, 1 British pound ( A £1) could be exchanged for $2.75 in U.S. currency, and 1 Canadian dollar ($1) could be exchanged for $0.92 in U.S. currency. On that day, how much Canadian currency, rounded to the nearest Canadian cent, could be exchanged for £2 ?

A) $0.41
B) $1.84
C) $2.07
D) $5.06
E) $5.98

Answer 1

To exchange £2 to Canadian currency, first convert it to U.S. currency and then convert it to Canadian currency using the given exchange rates.

Step-by-step explanation:

To determine how much Canadian currency can be exchanged for £2, we need to convert £2 to U.S. currency using the given exchange rate of 1 British pound = $2.75.

Since £1 = $2.75, £2 would equal $2.75 x 2 = $5.50.

Next, we convert $5.50 to Canadian currency using the given exchange rate of 1 Canadian dollar = $0.92.

By dividing $5.50 by $0.92, we find that $5.50 is equivalent to 5.98 Canadian dollars.

Rounded to the nearest Canadian cent, £2 can be exchanged for $5.98 Canadian.