Dear Team, I would like to get clarified a doubt in FAC pack. The doubt is in Question 1.3 which goes as below: Exchange Rates - €/£ = 0.61 and £/$ = 1.44How much would 1000 euro be worth in US Dollars? I feel the answer is 1138.43$ (1000€ must be equal to 1639.34£ and 1639.34£ is equal to 1138.43$) But in solution it is given as 878.40$ I inferred that one '£ is equal to 0.61€ and 1$ is equal to 1.44£'. Isn't my inference valid?Will be very much thankful if my doubt is clarified. -- Husthana
You need to think a little bit harder about the notation they've used. The solution is actually $878.4. Take an example: If I said that £100 was worth €164, then I could make an equation as follows: €164 = £100 €164 / £100 = 1 €/£ * 1.64 = 1 €/£ = 1/1.64 €/£ = 0.61 So in this case, it doesn't mean that for every £1, you get €0.61 (i.e. the notation doesn't mean "Euros per pound"), it literally means that 1 Euro is worth 0.61 pounds. So the exchange rate is actually €1.64:£1 If you do the same for the dollar rate then retry your calculations you should reach the correct answer.
