Question 1.8: (a) A book is priced at US$20. Calculate the price of the bo......

The calculations (correct to four decimal places) are carried out as follows:
Step 1: State the appropriate rates from Table 1.1.
Step 2: Set up the identity: 1 unit of given currency = y units of required currency.
Step 3: Multiply both sides by x: x units of given currency = x × (y units of required currency).
(a) (i) The price is given in US dollars, the price is required (currency) in Euros, hence

Step 1: US$1.3003 = €1        from Table 1.1

Step 2: US$1 = € \frac{1}{1.3003}      dividing both sides by 1.3003

Step 3: US$20 = € \frac{20}{1.3003}      multiplying both sides by 20

         = €15.3811

(a) (ii)
Step 1: From Table 1.1 write down the exchange rates for 1 Euro in both British pounds and US dollars:

\left. \begin{matrix} US \$ 1.3003 = 1 Euro \\ £0.8346 = 1 Euro \end{matrix} \right\} \to US \$ 1.3003 = £0.8346

$1.3003 = £0.8346 since they are each equivalent to 1 Euro
The given price is in US dollars, the price is required in British pounds

Step 2: US$1 = £1 × \frac{0.8346}{1.3003}  dividing both sides of the previous equation by 1.3003 to get rate for $1 in £

Step 3: US$20 = £20 × \frac{0.8346}{1.3003}    multiplying both sides by 20

     US$20 = £12.8370

(a) (iii)

Step 1: From Table 1.1 write down the exchange rates for 1 Euro in Australian dollars and US dollars:

\left. \begin{matrix} US \$ 1.3003 = 1 Euro \\ A \$ 1.2429 = 1 Euro \end{matrix} \right\} \to US \$ 1.3003 = A \$ 1.2429

US$1.3003 = A$1.2429         since they are each equivalent to 1 Euro
The given price is US$, the required price (currency) is A$

Step 2: US$1 = A$1 × \frac{1.2429}{1.3003}    dividing both sides by 1.3003

Step 3: US$20 = A$20 × \frac{1.2429}{1.3003}    multiplying both side by 20

        = A$19.1171

(b) (i)
Step 1: From Table 1.1 write down the exchange rates for 1 Euro in Australian dollars and pounds sterling:

\left. \begin{matrix} £0.8346 = 1 Euro \\ A \$ 1.2429 = 1 Euro \end{matrix} \right\} \to £0.8346 = A \$ 1.2429

Here we are given A$500 and we require its equivalent in £ sterling
A$1.2429 = £0.8346 since they are each equivalent to 1 Euro

Step 2: A$1 = £1 × \frac{0.8346}{1.2429}    dividing both sides by 1.2429 to get rate for A$1

Step 3: A$500 = £1 × \frac{0.8346}{1.2429} × 500  multiplying both sides by 500

     A$500 = £335.7470

(b) (ii)
Step 1: From Table 1.1 write down the exchange rates for 1 Euro in Singaporean dollars and British pounds:

\left. \begin{matrix} £0.8346 = 1 Euro \\ S \$ 1.6527 = 1 Euro \end{matrix} \right\} \to £0.8346 = S \$ 1.6527

S$1.6527 = £0.8346       since they are each equivalent to 1 Euro

Step 2: S$1 = £1 × \frac{0.8346}{1.6527}    dividing both sides by 1.6527

Step 3: S$10 000 = £1 × \frac{0.8346}{1.6527} × 10 000  multiplying both sides by 10 000

     S$10 000 = £5049.9183