Question

The Ruiz family is exchanging euros for US dollars. The exchange rate is 1 euro equals 1.35261 USD. Since the Ruiz family knows that USD are stated to the nearest hundredth of a dollar, they used the conversion ratio. Determine if this will give the Ruiz family the correct exchange.

Answer 1

The correct answer is:

No, the family will not be able to correctly convert their euros to U.S. dollars using the rate 1 euro = 1.35 USD.

Expanation:

Suppose the family has 250 euros. Using the actual exchange rate, we find they have

250(1.35261) = 338.1525 ≈ $338.15

If we use the rate 1 euro = 1.35 USD, we would have

250(1.35) = $337.50.

They would be short $0.65. While this does not seem like a large discrepancy, the more money they convert with this rate, the more incorrect they will be.

Answer 2

1 euro = 1.35261 USD

The Ruiz family will be able to exchange their euros for US dollar using the rate of $1.35 per 1 euro.