If the exchange rate between the dollar and the euro is equal to €0.8 per $1.00, then what is the U.S. dollar cost of a German-made Porsche costing €45,000?
A)$36,000
B)$39,000
C)$45,000
D)$56,250
E)None of these

Question

Quizplus · Accepted Answer

We need to use the given exchange rate to convert euros to dollars:
€1 = $0.8

To convert €45,000 to dollars, we can multiply both sides of the equation by €45,000:
€45,000 = $0.8 * €45,000

Using a calculator, we can find that:
€45,000 = $56,250

Therefore, the cost of the Porsche in US dollars is $56,250. Answer choice D is correct.

If the Exchange Rate Between the Dollar and the Euro