Question

Sunland Corporation’s recent sale to a firm in Mexico produced revenues of 13,520,000 Mexican pesos (MPs). If the firm sold the pesos to its bank and was credited with $1,189,760.00, what was the spot rate at which the pesos were converted?

Answer 1

11.3636 Mexican pesos per US dollar

Step-by-step explanation:

total revenue in Mexican pesos = 13,520,000

total US dollars received = 1,189,760

spot rate = 13,520,000 Mexican pesos / 1,189,760 US dollars = 11.3636 Mexican pesos per US dollar

The spot exchange rate is the current price of a currency compared to another currency, e.g. if you have US$1,000, you could purchase 11,363.6 Mexican pesos.