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Suppose you observe the following exchange rates: €1 = $1.30; £1 = $2.10. Calculate the euro-pound exchange rate.

Question

Suppose you observe the following exchange rates: €1 = 1.30;£1=1.30; £1 = 2.10. Calculate the euro-pound exchange rate.

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Solution 1

To calculate the euro-pound exchange rate, you need to divide the dollar value of the euro by the dollar value of the pound.

So, €1/1.30=£1/1.30 = £1/2.10

This simplifies to €1 = £0.619.

So, the euro-pound exchange rate is approximately £0.619 per euro.

Solution 2

To calculate the euro-pound exchange rate, you need to divide the dollar value of the euro by the dollar value of the pound.

So, €1/1.30=£1/1.30 = £1/2.10

This simplifies to €1 = £0.619.

So, the euro-pound exchange rate is approximately £0.619 per euro.

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