You Have £100

question 60

Multiple Choice

You have £100. A friend of yours wants to exchange C$175 for your £100. What will be your profit or loss in pounds if you accept your friend's offer assuming you can exchange C$1 for $.9134 and exchange £1 for $1.7240?

• A) £7.28 loss
• B) £3.29 loss
• C) £2.51 loss
• D) £1.20 profit
• E) £2.51 profit

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Definitions:

Average Rate

A mean value calculated to represent the typical rate of something, such as interest, return, or speed, over a given period.

Fixed Asset

Long-term tangible property that a firm owns and uses in its operations to generate income, such as buildings and machinery.

Useful Life

The estimated period over which an asset is expected to be usable by an organization, after which it is considered to be no longer useful for business operations.

Residual Value

The estimated worth or salvage value of an asset at the end of its useful life.