Question

Bethany lives in London.

Her cousin Pierre lives in Paris.
They are going on holiday together to America.

Pierre is offered an exchange rate of 1 euro to 1.07 dollars.
Bethany is offered an exchange rate of £1 to 1.25 dollars.

Bethany says, "Using these exchange rates, £1 is worth ............ euros."

Complete Bethany's sentence.
You must show all your working.

Answer 1

1.17 Euros

Explanation:

Given that £1 equals 1.25 dollars then to get the value of 1 dollar will be 1/1.25=£0.8

If 1 Euro equals to 1.07 dollars and knowing that 1 dollar is equal to £0.8 then 1.07 dollars will be equal to 1.07*0.8=£0.856

1.07 dollars=£0.856=1Euro

1.25 dollars =£1=x Euros

Cross multiplying the last two parts then

£0.856* x Euros=£1*1Euro

X=1/0.856=1.1682242990654

Rounding off to 2 decimal places, x=1.17

Therefore £1 is worth 1.17 Euros