Question

Currency exchange rates.

On the day you arrive in​ England, the exchange rate for U.S. dollars and British pounds is ​$1:pound 0.49. You have ​$3 comma 700​, which you convert to pounds. While you remain in England for the next two​ weeks, the exchange rate falls to ​$1:£0.45. As you leave​ England, you convert the ​£146 you have left to dollars.

How much did you spend in England in U.S.​ dollars? Did the movement in the exchange rate help or hurt​ you? How much did you spend in England in U.S.​ dollars?

Answer 1

$3,402.04

Movement helped you

Step-by-step explanation:

The initial amount of $3,700 when converted to British pounds at a rate of $1:£0.49 yielded:

`I = \$3,700*0.49(\pounds)/(\$)\\I=\pounds 1,813`

If the remaining amount was ​£146, the total spend in dollars is given by:

`S=(\pounds1,813- \pounds146)/(0.49) \\S=\$3,402.04`

The amount spent in England in U.S.​ dollars was $3,402.04.

If the exchange rate was still $1:£0.49, the amount received back would be:

`A_1 = (146)/(0.49)=\$297.96`

At the new rate of $1:£0.45, the amount received is:

`A_2 = (146)/(0.45)=\$324.44`

Therefore, the movement in the exchange rate helped you.