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The exchange rate between the pound and the euro is £1 = €1.25 - Edexcel - GCSE Business - Question 8 - 2015 - Paper 1

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The exchange rate between the pound and the euro is £1 = €1.25. What would be the cost, in euros, of 425 units? Select one answer: A €452.25 B €531.25 C €11 050.0... show full transcript

Worked Solution & Example Answer:The exchange rate between the pound and the euro is £1 = €1.25 - Edexcel - GCSE Business - Question 8 - 2015 - Paper 1

Step 1

What would be the cost, in euros, of 425 units?

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Answer

To determine the cost in euros of 425 units, we will use the exchange rate given: £1 = €1.25.

First, we need to convert the units into pounds. Assuming each unit costs £1:

extCostinpounds=425extunitsimes£1/extunit=£425 ext{Cost in pounds} = 425 ext{ units} imes £1/ ext{unit} = £425

Next, we convert this to euros using the exchange rate:

extCostineuros=£425imes1.25/£1=531.25 ext{Cost in euros} = £425 imes €1.25/£1 = €531.25

Therefore, the correct answer is B €531.25.

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