Question

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

Answer 1

Answer:

We obtain a loss of $12.555 to accept the offer of a friend.

Explanation:

To know the profit or the loss, we must to calculate the amount of dolars you can exchage with the 175 canadian dollars that your friend gives you, and compares it with the mount of dollars you can echange with the initial 100 pounds.  

We first convert the C$175 to dollars, with the change of C$1 to $0.9134:

C$175 * ( 0.9134 $/C$ ) = $159.845

Then we convert the 100£ to dollars with the change of 1£ to $1.724

100£ * ( 1.724 £/$ ) = $172.4

The profit or loss is calculated by the difference between the C$175 to the 100£ converted to dollars:

$159.845 -$172.4 = -$12.555

We obtain a loss of $12.555 to accept the frined's offer.