A traveller budgets in pounds (GBP) but pays in euros. The exchange rate is 1 GBP = 1.15 euros.Item Cost (GBP) Hotel 320 Meals 80 Travel 150
What is the total cost in euros?
Answer and explanation
Correct answer: C. 632.50 euros
- Step 1: Total in GBP = 320 + 80 + 150 = 550. Step 2. Multiply by the rate: 550 x 1.15 = 632.5 euros. Answer: 632.50 euros. Why not the others: 478.26 euros divides by the rate, which converts in the wrong direction; 82.50 euros applies only the 0.15 excess over 1, not the full rate; 551.15 euros adds the rate to the total instead of multiplying.
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