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A plc receives $100,000 from a customer in the US. The exchange rate is $/£ 1.6250 – 1.6310. How many £’s will A plc receive?

Question

A plc receives 100,000fromacustomerintheUS.Theexchangerateis100,000 from a customer in the US. The exchange rate is /£ 1.6250 – 1.6310. How many £’s will A plc receive?

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Solution 1

To determine how many £'s A plc will receive, we need to convert the 100,000into£usingthegivenexchangerateof100,000 into £ using the given exchange rate of /£ 1.6250 - 1.6310.

Step 1: Find the average exchange rate The given exchange rate range is $/£ 1.6250 - 1.6310. To find the average exchange rate, we add the two rates and divide by 2: (1.6250 + 1.6310) / 2 = 1.6280

Step 2: Convert dollars to pounds To convert 100,000to£,wedividetheamountbytheaverageexchangerate:£=100,000 to £, we divide the amount by the average exchange rate: £ = 100,000 / 1.6280

Calculating this, we find that A plc will receive approximately £61,464.59.

This problem has been solved

Solution 2

To determine how many £'s A plc will receive, we need to convert the 100,000into£′susingthegivenexchangerateof100,000 into £'s using the given exchange rate of /£ 1.6250 - 1.6310.

Step 1: Find the average exchange rate To find the average exchange rate, we add the two rates together and divide by 2: (1.6250 + 1.6310) / 2 = 1.6280

Step 2: Convert dollars to pounds To convert dollars to pounds, we divide the amount in dollars by the exchange rate: $100,000 / 1.6280 = £61,457.97

Therefore, A plc will receive approximately £61,457.97.

This problem has been solved

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