Question

Isaac Diez of Brazil. Isaac Diez Peris lives in Rio de Janeiro, Brazil. While attending school in Spain, he meets Juan Carlos Cordero from Guatemala. Over the summer holiday, Isaac decides to visit Juan Carlos in Guatemala City for a couple of weeks. Isaac's parents give him some spending money, 4600 Brazilian real (BRL). Isaac wants to exchange his Brazilian real for Guatemalan Quetzal (GTQ). He collects the following rates Spot rate on the GTQ/EUR: Spot rate on the EUR/BRL: GTQ 11.0791 = EUR 1.00 EUR 0.513 = BRL 1.00 a. What is the Brazilian realGuatemalan quetzal cross rate? M se fal The cross rate between the Brazilian real and the Guatemalan quetzal is (Round to four decimal places.) b. How many Guatemalan quetzals will Isaac get for his Brazilian reais? He will get quetzals for his reals. (Round to the nearest integer.) U job N

Answer 1

Given Spot rates:

1 EUR= 11.0791GTQ

1 BRL = 0.5130 EUR

So 1 BRL = 11.0791*0.5130 GTQ = 5.6836 GTQ or BRL 5.6836 = GTQ 1.00

So, Cross rate between Brazilian real and Guatemalan quetzal = 5.6836

Isaac get 4600 Brazilian real which are equal to 4600*5.6836 Guatemalan quetzal = 26145 GTQ