Sanjay has 90 euros to spend before he flies back to the United States. He wishe

Question

Sanjay has 90 euros to spend before he flies back to the United States. He wishes to purchase jewelry priced at $160 (U.S.) in a duty-free shop at the airport. Euros can be bought for $1.30 and sold for $1.22. The owner of the duty-free shop tells Sanjay that the jewelry can be purchased for 90 euros plus $37 (U.S.). Is this a good deal for Sanjay? Assume there is a 7.5 euro commission on the exchange transaction. If Sanjay accepts the deal, he will pay an equivalent of $ 146 . (Round to the nearest dollar.) If Sanjay does not accept the deal, he will pay $. (Round to the nearest dollar.)

Explanation / Answer

- If Sanjay accepts the deal, he will pay = 1.22 x 90 + 37 = $146.80 or $147

- If Sanjay does not accept the deal, he will pay = $160

Thus, it is a good deal for Sanjay.

Note: Exchange commission is not considered since it is same on both the cases and is irrelevant for the decision. However, Exchange commission is $9.15(7.5 x 1.22).

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.