Question

An American executive is going on a business trip to Japan and England. Before she departs, she purchases $10,000 worth of Japanese yen at the prevailing rate of ¥82.54/$. After finishing her business in Japan, she departs for London where she converts the remaining yen to British pounds. She sells ¥512,375 at a rate of ¥132.03/£. She finally returns to the United States with £567.35, which she would like to convert to U.S. dollars. Based only on the rates given, how many dollars will she receive if she sells the pounds?

Answer 1

The correct answer is $907.76.

Step-by-step explanation:

According to the scenario, computation of the given data are as follow:-

1¥ = 82.54$

1£ = 132.03¥

Convert pounds to us dollars= £ ÷ $ = £132.03 ÷ $82.54

= 1.60$ ÷ £

Mean, 1£ = 1.6$

She has £567.35 .

After converting the pound into the dollar, she will receive = £567.35 × $1.60

= $907.76

Hence, she receive $907.76 if she sells the pounds.