Final answer:
To convert 20 euros into U.S. dollars at an exchange rate of 0.90 euro per dollar, divide 20 by 0.90, which approximately equates to 22 dollars. Therefore, the correct answer is c. $22.
Step-by-step explanation:
When traveling in France, if you want to purchase a bottle of wine that costs 20 euros and the exchange rate is 0.90 euros per dollar, you would calculate the cost in U.S. dollars by dividing the price in euros by the exchange rate. To find out how much the wine would cost in dollars, you use the formula:
Cost in USD = Cost in Euros / Exchange Rate
For this particular question:
Cost in USD = 20 Euros / 0.90 Euro per USD
Cost in USD = 22.22 (repeating) USD
However, since prices are usually rounded to the nearest whole dollar, this would be approximately 22 dollars. Therefore, the correct option here would be c. $22.
The importance of understanding currency conversion is highlighted by real-world examples, such as how exchange rates can impact international business transactions and the sale price of imported goods like Bass Ale from a brewery in England.