At an airport, Ella exchanges $£ 70$ for $€ 87.50$. Fill in the missing values below for this exchange rate.
£1 = € $\square$
€ $1=£$ $\square$
Answer (1)
Divide the Euro amount by the Pound amount to find the Euro value of £1: 70 87.50 = 1.25 .
Divide the Pound amount by the Euro amount to find the Pound value of €1: 87.50 70 = 0.8 .
State the equivalent Euro value for £1: £1 = €1.25.
State the equivalent Pound value for €1: €1 = £0.8. £1 = €1.25 ; €1 = £0.8
Explanation
Understanding the Problem We are given that Ella exchanges £70 for €87.50 . We need to find how many Euros (€) equal £1 and how many Pounds (£) equal €1.
Calculating Euros per Pound To find the equivalent Euro value for £1 , we divide the total Euro amount by the total Pound amount: £70 €87.50 = €1.25 per £1
Calculating Pounds per Euro To find the equivalent Pound value for €1, we divide the total Pound amount by the total Euro amount: €87.50 £70 = £0.80 per €1
Final Answer Therefore, £1 = €1.25 and €1 = £0.80 .
Examples
Exchange rates are used daily when people travel or conduct international business. For example, if you are planning a trip from the UK to Europe and want to budget your expenses, knowing the exact exchange rate helps you determine how much your Pounds will be worth in Euros. This ensures you have enough money for your trip and can compare prices effectively. Similarly, businesses use exchange rates to price goods and services in different countries, impacting their profitability and competitiveness.
