Question

You have GBP 2,000 and EUR2,500 after your trip to EU, now you want to convert...

You have GBP 2,000 and EUR2,500 after your trip to EU, now you want to convert all into USD. You receive the following quotations: EUR1: USD 1.1000-25 GBP1: USD 1.4561-70 How much USD in all will you receive from selling your GBP and EUR

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution :

As per the information given in the question we have

Bid / Ask

USD / EUR = 1.1000 / 1.1025

USD / GBP = 1.4561 / 1.4570

1. Conversion of 2000 GBP into USD :

We shall sell the GBP to buy USD.

Since the quote given is in GBP we shall take the Bid rate for the conversion.

Hence we will use the Bid rate of One GBP = USD 1.4561

Thus, when we sell 2000 GBP we receive = 2000 GBP * USD 1.4561

= USD  2,912.2000

2. Conversion of 2500 EUR into USD :

We shall sell the EUR to buy USD.

Since the quote given is in EUR we shall take the Bid rate for the conversion.

Hence we will use the Bid rate of One EUR = USD 1.1000

Thus, when we sell 2500 EUR we receive = 2500 EUR * USD 1.1000

= USD  2,750.0000

Thus sale of GBP 2,000 will result in receipt of USD 2912.2000

Thus sale of EUR 2,500 will result in receipt of USD 2750.0000

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You have just landed in the airport of Frankfurt, Germany, ready to embark on the first...
You have just landed in the airport of Frankfurt, Germany, ready to embark on the first leg of your European holiday. Having arrived from the US, you have USD $5,000, that you wish to exchange into the local currency. You are also surprised to find a gift of JPY 30,000 that your parents have slipped into your luggage as additional spending money. You compare the exchange rates of the following dealers to obtain local currency: Brauhaus FX EUR/USD   1.21/1.13 EUR/JPY...
Suppose that you are in Singapore with 10,000 Singapore dollars (SGD) and you want to exchange...
Suppose that you are in Singapore with 10,000 Singapore dollars (SGD) and you want to exchange them for euros for your trip to Paris. The exchange shop gives you the following rates: Commission: 1% USD/SGD = 1.2375 EUR/USD = 1.2800. How many euros will you get for your Singapore dollars?
After retiring, you want to be able to take $2,000 every month for a total of...
After retiring, you want to be able to take $2,000 every month for a total of 20 years from your retirement account. The account has an annual rate of 4.1% compounded monthly. How much of the money paid out over the 20 years is the interest earned? Round your answer to two decimal places.
Today the current EUR to USD exchange rate is 1 EUR = 1.19 USD. According to...
Today the current EUR to USD exchange rate is 1 EUR = 1.19 USD. According to the Bloomberg consensus estimate, the EUR to USD exchange rate in four years is forecasted to be 1 EUR = 1.31 USD. You begin with 100 USD today and will invest in a European security that provides 10% annual returns (in EUR). Using this information, answer the following six (6) questions. 1) Is the USD forecasted to appreciate or depreciate relative to EUR? a)...
After retiring, you want to be able to take $2,000 every month for a total of...
After retiring, you want to be able to take $2,000 every month for a total of 20 years from your retirement account. The account has an annual rate of 4.1% compounded monthly. How much of the money paid out over the 20 years is the interest earned? Round your answer to two decimal places. (152,808.38) After retiring, you want to be able to take $3,500 every month for a total of 35 years from your retirement account. The account has...
You charged $2,000 on your credit card for a trip during Spring break. Your credit card...
You charged $2,000 on your credit card for a trip during Spring break. Your credit card company charges you 22% annual interest, compounded monthly. If you make the minimum payments of $50 per month, how long will it take ( to the nearest month) to pay off your balance? Answer choices: A. 81 months B. 73 months C. 70 months D.79 months
1) Graduation is 3 years away and you want to have $650 available for a trip....
1) Graduation is 3 years away and you want to have $650 available for a trip. If your bank is offering a 3-year CD (certificate of deposit) paying 2.6% simple interest, how much do you need to put in this CD to have the money for your trip? 2) $8000 is deposited in an account earning 2% interest compounded continuously. Use the continuous interest formula below to determine how long it takes for the amount in the account to double....
FOR THE WHOLE HOMEWORK, YOU CAN USE 4 NUMBERS AFTER DECIMAL PLACE IN YOUR CALCULATION. Use...
FOR THE WHOLE HOMEWORK, YOU CAN USE 4 NUMBERS AFTER DECIMAL PLACE IN YOUR CALCULATION. Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD: USD0.74942 Quotation 2: HKD: USD0.12896 Quotation 3: HKD: AUD0.1800 1. From quotation 1 and 2, what is the crossed rate for HKD1 in AUD 2. What is the complete trading direction to conduct triangular arbitrage in this situation? A. USD ==> AUD ==> HKD B. HKD ==> USD ==>...
What is the total for your trip in the currency of your destination country? 1 usd...
What is the total for your trip in the currency of your destination country? 1 usd = 14682.70 Indonesian rupiah 1818 usd = 26693148.60 Indonesian rupiah HELP WITH QUESTION 3 AND 4 AND 5 3) Let’s not forget about inflation. What will the estimated total be if you add in 3% each year, for 4 years, for inflation (in US dollars)?: Show Steps. Answer (rounded to the nearest penny):___________________________ 4) Let’s come up with a saving plan and figure out...
Suppose you want to retire when you reach age 70, at that time you want to...
Suppose you want to retire when you reach age 70, at that time you want to have $1,000,000 accumulated in your retirement account. Now your 25 years old, starting today, how much you have to save equally, at the beginning of each year, in order to reach your retirement goal if the account earns 5% annually compounded interest?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT