Question

Bill and gwyll are going on holiday to the USA. Bill changes £450 into $729 Gwyll changes £500 into $780 What exchange rate did bill get? What exchange rate did Gwyll get?

Answer 1

Bill's exchange rate was $1 to £1.62

Gwyll's exchange rate was $1 to £1.56

Explanation:

Given

Bill changed £450 into $729

Gwyll changes £500 into $780

Required

Determine their exchange rates

Exchange rate is calculated by dividing the currencies against one another.

Given that they both changed from pound to dollar, the exchange rate is calculated as thus;

`Rate = (Amount\ in\ pound)/(Amount\ in\ dollar)`

Calculating Bill's Exchange Rate

`Rate = (\£729)/(\$450)`

`Rate = (\£1.62)/(\$1)`

Represent as a ratio

`Rate = \£1.62:\$1`

Hence, Bill's exchange rate was $1 to £1.62

Calculating Gwyll's Exchange Rate, using the same formula and steps

`Rate = (\£780)/(\$500)`

`Rate = (\£1.56)/(\$1)`

Represent as a ratio

`Rate = \£1.56:\$1`

Hence, Gwyll's exchange rate was $1 to £1.56