Question

John has €500 and he is planning on to go to America so he needs to switch his euro to dollars, the exchange rate is €1 to $1.1, then he decided not to go to America so he switched it back to euro, the exchange rate was $1 to €0.85. How much money did John lose to the bank

Answer 1

The amount of money the John lost is € 32.5.

Explanation:

John has €500.

In America, the exchange rate is €1 to $1.1

So, €500 = €500 x 1.1 = $ 550

Now, he is not going to America.

In Europe, the exchange rate is $1 to €0.85.

So, $ 550 = $ 550 x 0.85 = € 467.5

Thus, the money lose by John = €500 - € 467.5 = € 32.5