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e) A new coat costs 3,900 Russian rubles. How much will the identical coat cost in Euros if absolute purchasing power parity
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Answer #1

First lets convert Russian rubles into US$

1 $ = 27.0520 Ruble

? = 3900 Rubles

= 3900 / 27.0520

= 144.1668 $

Now lets convert $ into Euro

1 Euro = 1.2762 $

? = 144.1668$

= 144.1668/1.2762

= 122.9657 Euro

Thus similar coat will cost 122.9657 in Euros

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