We appreciate your visit to Toby goes on holiday to Geneva Switzerland In Geneva Toby sees a watch costing 193 75 CHF Swiss francs In Manchester an identical watch costs. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Answer:
Part a) In Geneva the watch is cheaper
Part b) The watch in Geneva is [tex]\£20[/tex] cheaper than the same watch in Manchester
Step-by-step explanation:
The question is
a) In which city is the watch cheaper?
b) By how much is it cheaper (in £)?
Part a)
Transform [tex]CHF\ to\ \£[/tex] in order to work with the same currency and make the comparison
If [tex]\£1=1.55CHF[/tex]
[tex]193.75\ CHF=193.75(\frac{1}{1.55})=\£125[/tex]
Now we can make the comparisons:
In Geneva the watch costs
[tex]\£125[/tex]
and
in Manchester it costs
[tex]\£145[/tex]
[tex]\£125 < \£145[/tex]
therefore
In Geneva the watch is cheaper
Part b)
If we want to know by how much is cheaper, subtract from the expensive price the value of the cheaper price
[tex]\£145-\£125=\£20[/tex]
Therefore
The watch in Geneva is [tex]\£20[/tex] cheaper than the same watch in Manchester
Thanks for taking the time to read Toby goes on holiday to Geneva Switzerland In Geneva Toby sees a watch costing 193 75 CHF Swiss francs In Manchester an identical watch costs. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
Final answer:
To compare the cost of the watch in two currencies, we convert the Swiss franc price into British pounds, finding the watch cheaper in Geneva. Investors profit by anticipating currency changes, such as a rising British pound value against the U.S. dollar.
Explanation:
The student's question involves comparing the cost of an identical item in two different currencies and determining which buying option would be most cost-effective given the current exchange rate. To evaluate this, we should express both prices in the same currency. In this case, we'll convert the price of the watch in Swiss francs (CHF) to British pounds (£), using the exchange rate provided (1 pound = 1.55 CHF).
The cost of the watch in Geneva is 193.75 CHF. Using the exchange rate:
- 193.75 CHF × (1 GBP / 1.55 CHF) = 125 GBP
Hence, Toby would find the watch to be cheaper in Geneva when converted to British pounds.
An international investor, on the other hand, anticipates changes in currency value to make profits. If the investor expects the British pound to increase in value relative to the U.S. dollar, they might convert U.S. dollars to British pounds and then convert back after the pound's value has risen, resulting in a profit.
