Question

please answer 2, 3ab. ty ❤️

2. The exchange rate for the Danish krone, Es/pke is .15. The exchange rate for the Uruguayan peso, Es/Peso, is .025. What the exchange rate of krone for Uruguayan pesos, EoKx/poso using the cross rate? A bottle of Chivas Regal, a scotch whiskey made in the U.K., costs 30€. What is the price in dollars when the exchange rate, Es = 1.2? When Es = 1.3? b. A bottle of Johnnie Walker, a Kentucky bourbon, costs $30. What is the cost in pounds when Ese = 1.2? When Ese = 1.3?

Answer 1

Question 2

E_$/Dkr = 0.15

This means that,

$0.15 = 1 DKr

$1 = (1/0.15) Dkr                        - equation 1

E_$/peso = 0.025

This means that,

$0.025 = 1 peso

$1 = (1/0.025) peso                    - equation 2

From equation 1 and 2

(1/0.025) peso = (1/0.15) DKr

1 peso = (0.025/0.15) Dkr

1 peso = 0.17 Dkr

So,

The exchange rate of krone for Uruguayan pesos, E_DKr/peso is 0.17.

Question 3(a)

Cost of bottle = 30 pounds

Exchange rate is as follows -

1 pound = $1.2

30 pounds = 30 * 1.2 = $36

Thus,

The price in dollars when exchange rate, E_$/pound = 1.2 is $36

Cost of bottle = 30 pounds

Exchange rate is as follows -

1 pound = $1.3

30 pounds = 30 * 1.3 = $39

Thus,

The price in dollars when exchange rate, E_$/pound = 1.2 is $39

Question 3(b)

Cost of bottle = $30

Exchange rate is as follows -

1 pound = $1.2

$1.2 = 1 pound

$1 = (1/1.2) pounds

$30 = (30/1.2) = 25 pounds

Thus,

The price in pounds when exchange rate, E_$/pound = 1.2 is 25 pounds

Cost of bottle = $30

Exchange rate is as follows -

1 pound = $1.3

$1.3 = 1 pound

$1 = (1/1.3) pounds

$30 = (30/1.3) = 23.1 pounds

Thus,

The price in pounds when exchange rate, E_$/pound = 1.2 is 23.1 pounds