Question

In France gasoline is 2.096 per liter. There are 3.78541178 liters per gallon. If the Euro is trading at 1.762 then the equivalent price per gallon is

Answer 1

To find the price per gallon in France converted to dollars, multiply the price per liter by liters per gallon to get the Euro amount, then convert to dollars using the exchange rate. The result is approximately $13.97 per gallon.

Step-by-step explanation:

The question asks to determine the price of gasoline per gallon in France when converted to Euros, considering the given petrol price per liter and the exchange rate. To calculate this, we will first convert the price from liters to gallons and then convert Euros to the equivalent value in using the exchange rate.

1. Calculate the price per gallon in Euros by multiplying the price per liter by the number of liters in a gallon:
   €2.096 per liter × 3.78541178 liters per gallon = €7.9310458648 per gallon
2. Convert the price from Euros to dollars using the exchange rate:
   €7.9310458648 per gallon × 1.762 = $13.97196384336 per gallon

Therefore, the equivalent price of gasoline per gallon in France, when converted to dollars, is approximately $13.97.

Answer 2

equivalent price/ gallon = 13.98 US$ / gallon

Step-by-step explanation:

Assuming that the exchange rate is 1.762 US$ /€ , then

thus

equivalent price/ gallon = liters/gallon * euros / liter * dollars/euro

equivalent price/ gallon = 3.78541178 liters/ gallon * 2.096 € /liter * 1.762 US$ /€ = 13.98 US$ / gallon

equivalent price/ gallon = 13.98 US$ / gallon

if the actual price would be different from the equivalent , then there would be an arbitrage opportunity ( profit with no risk)