Photo AI
The exchange rate between the pound and the euro is £1 = €1.25 - Edexcel - GCSE Business - Question 8 - 2015 - Paper 1
Question 8
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... 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?
Answer
To find the cost in euros of 425 units when the exchange rate is £1 = €1.25, we first need to determine the cost in pounds of the 425 units.
Assuming the cost per unit in pounds is £1 (since the question does not specify), the total cost in pounds would simply be:
total cost in pounds = 425 units * £1/unit = £425.
Next, to convert this cost from pounds to euros, we use the exchange rate provided:
total cost in euros = total cost in pounds * exchange rate = £425 * €1.25/£1.
Calculating this gives us:
total cost in euros = €531.25.
Thus, the correct answer is B €531.25.