christopher withdrew 30 united states dollars (usd) from an automatic teller machine in germany. he received…
christopher withdrew 30 united states dollars (usd) from an automatic teller machine in germany. he received 24 euros (eur). which of these describes christophers exchange rate from euros to united states dollars? o 0.75 eur / 1.00 usd o 0.80 eur / 1.00 usd o 1.00 eur / 0.80 usd o 1.25 eur / 1.00 usd
Answer
Explanation:
Step1: Recall exchange - rate formula
Exchange rate = $\frac{\text{Amount in target currency}}{\text{Amount in source currency}}$
Step2: Identify amounts
The amount in source currency (USD) is 30, and the amount in target currency (EUR) is 24.
Step3: Calculate exchange rate
Exchange rate from USD to EUR is $\frac{24}{30}=0.80$ EUR per 1 USD. To get the exchange rate from EUR to USD, we take the reciprocal: $\frac{1}{0.80}=1.25$ EUR / 1.00 USD
Answer:
1.25 EUR / 1.00 USD