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Answer :
To determine which option is better for the South African buyer, we need to convert the costs of the watch from euros and pounds into South African Rand (ZAR) and compare these values. Here’s how we do this step-by-step:
1. Identify the given costs:
- The cost of the watch in Germany is €350.
- The cost of the watch in the UK is £245.
2. Use the given exchange rates to convert these amounts into South African Rand:
- The exchange rate from euros to South African Rand is 1 Euro = 14.12 ZAR.
- The exchange rate from pounds to South African Rand is 1 Pound = 12.06 ZAR.
3. Convert the cost in euros to Rand:
- Multiply the euro amount by the exchange rate to find the cost in Rand:
[tex]\[
\text{Cost in Rand (Euro)} = 350 \, \text{Euro} \times 14.12 \, \text{ZAR/Euro} = 4942.0 \, \text{ZAR}
\][/tex]
4. Convert the cost in pounds to Rand:
- Multiply the pound amount by the exchange rate to find the cost in Rand:
[tex]\[
\text{Cost in Rand (Pound)} = 245 \, \text{Pound} \times 12.06 \, \text{ZAR/Pound} = 2954.70 \, \text{ZAR}
\][/tex]
5. Compare the two converted costs to determine which is cheaper for the South African buyer:
- The cost in Rand for the watch bought in Germany is 4942.0 ZAR.
- The cost in Rand for the watch bought in the UK is 2954.70 ZAR.
Clearly, 2954.70 ZAR is less than 4942.0 ZAR.
6. Conclusion:
- The better option for the South African buyer is to purchase the watch in the UK for £245, because the cost in South African Rand is lower.
In summary, the option where the watch costs £245 is better as it translates to 2954.70 ZAR, which is cheaper compared to the option where the watch costs €350, translating to 4942.0 ZAR.
1. Identify the given costs:
- The cost of the watch in Germany is €350.
- The cost of the watch in the UK is £245.
2. Use the given exchange rates to convert these amounts into South African Rand:
- The exchange rate from euros to South African Rand is 1 Euro = 14.12 ZAR.
- The exchange rate from pounds to South African Rand is 1 Pound = 12.06 ZAR.
3. Convert the cost in euros to Rand:
- Multiply the euro amount by the exchange rate to find the cost in Rand:
[tex]\[
\text{Cost in Rand (Euro)} = 350 \, \text{Euro} \times 14.12 \, \text{ZAR/Euro} = 4942.0 \, \text{ZAR}
\][/tex]
4. Convert the cost in pounds to Rand:
- Multiply the pound amount by the exchange rate to find the cost in Rand:
[tex]\[
\text{Cost in Rand (Pound)} = 245 \, \text{Pound} \times 12.06 \, \text{ZAR/Pound} = 2954.70 \, \text{ZAR}
\][/tex]
5. Compare the two converted costs to determine which is cheaper for the South African buyer:
- The cost in Rand for the watch bought in Germany is 4942.0 ZAR.
- The cost in Rand for the watch bought in the UK is 2954.70 ZAR.
Clearly, 2954.70 ZAR is less than 4942.0 ZAR.
6. Conclusion:
- The better option for the South African buyer is to purchase the watch in the UK for £245, because the cost in South African Rand is lower.
In summary, the option where the watch costs £245 is better as it translates to 2954.70 ZAR, which is cheaper compared to the option where the watch costs €350, translating to 4942.0 ZAR.
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