The exchange rate between the US dollar (USD) and the euro (EUR) is currently 1 USD = 0.85 EUR. If something costs 150 EUR, how many dollars would you need? A) 176.47 USD B) 127.50 USD C) 170.00 USD D) 212.50 USD
The correct answer and explanation is:
To solve this, we need to convert the cost of 150 euros to US dollars using the given exchange rate.
Exchange Rate:
1 USD = 0.85 EUR
This means 1 euro is worth 10.85=1.1765\frac{1}{0.85} = 1.1765 USD.
To find how many dollars are needed to buy something that costs 150 euros, we multiply the cost in euros by the conversion factor: Cost in USD=150 EUR×10.85=150 EUR×1.1765 USD/EUR=176.47 USD\text{Cost in USD} = 150 \, \text{EUR} \times \frac{1}{0.85} = 150 \, \text{EUR} \times 1.1765 \, \text{USD/EUR} = 176.47 \, \text{USD}
Thus, the correct answer is A) 176.47 USD.
Explanation:
When exchanging currencies, the process is based on the concept of the exchange rate, which tells you how much one currency is worth in another. In this case, the exchange rate indicates that 1 US dollar is equivalent to 0.85 euros. To convert euros to dollars, we need to find out how many US dollars one euro can buy. We do this by taking the reciprocal of 0.85, which gives us 1.1765 USD per euro. This reciprocal represents the amount of USD you get for each euro. Once we have the conversion factor, we multiply the cost of the item in euros (150 EUR) by this factor to get the equivalent amount in US dollars.