High School

How would our answer change if the U.S. dollar and British pound trade at $7.2 = £1 when directly traded?

A. £100,500
B. £123,245
C. £135,500
D. We do not have sufficient information to answer this question

Answer :

The value of £135,500 is obtained in Option C) through a direct trade between the U.S. dollar and British pound at an exchange rate of $7.2 = £1.

If we assume that the exchange rate between the dollar and the pound is $7.2 = £1 when traded directly, and we are required to calculate the value of £100,000 in dollars, the solution will be:

£1 = $7.2

£100,000 = £1 × 100,000 = $7.2 × 100,000 = $720,000 (Multiplying both sides by £100,000)

$720,000 = £1 × X (£100,000)

(X is the value we need to determine)

$720,000 = X/7.2

(Dividing both sides by 7.2)

X = $720,000 × 7.2 = $5,184,000

(Multiplying both sides by 7.2)

Thus, if the U.S. dollar and British pound trade at $7.2 = £1 when traded directly, £100,000 is equal to $5,184,000.

In the given options, the amount closest to $5,184,000 is £135,500, which is option C.

Therefore, the correct option is C) £135,500.

Learn more about trade at: https://brainly.com/question/17727564

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