Question

Use the following chart to answer the next two questions. 6/1 6/2 6/3 £.625/$ $1.50/£ £.72/$...

Use the following chart to answer the next two questions.

6/1

6/2

6/3

£.625/$

$1.50/£

£.72/$

¥150/$

¥150/$

¥125/$

€1.25/$

€/$.80

$.90/€

How many euros would you receive for 100,000 pounds on 6/2? Round intermediate steps to four decimals and your final answer to two decimals.

Homework Answers

Answer #1

There are no direct rates avaiable for pounds to euros conversion. We have to use multiple currencies and quotes to get our answer.

On 6/2 DOLLAR/ POUND is given by $1.50 / Pound .

Step1 : Sell Pounds and buy dollars @ 1.50 $/ Pounds

Dollars bought = 100000 * 1.5 = $150000

Step 2 : Sell Dollars and buy euros @ 0.80 euros / dollar

Euros recieved = 150000 * 0.8 = 120,000 Euros

We will recieve 120,000 Euros for 100000 pounds.

( Please note that the amounts are multiplied by the forex quotes as the currency of the amount and base currency of the quote is same)

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