1) Suppose the U.S. dollar price of a British pound is $1.50; the dollar price of a euro is $1; a hotel room in London, England, costs 120 British pounds; and a comparable hotel room in Hanover, Germany, costs 200 euro.
a. Which hotel room is cheaper for a U.S. tourist?
b. What is the exchange rate between the euro and the British pound?
2) Suppose the U.S. dollar price of the Canadian dollar is $.75. How many Canadian dollars will it take to buy a set of dishes selling for $60 in Detroit, Michigan?© BrainMass Inc. brainmass.com October 10, 2019, 1:05 am ad1c9bdddf
The solution provides detailed calculations and explanations for the problem.