Question

You are buying telephone equipment from a company whose prices are given in English Pounds currency. You need to purchase telephone equipment for 3 offices along with one complete switchboard system. Equipment for each office costs 100 Pounds, and the switchboard costs 333 Pounds. A 10% tax must also be added to the order. If the current exchange rate is $1.50 equals 1 Pound, how much will the system cost?

Answer 1

We will first calculate the total cost in pounds then convert to dollars.

1- Equipment for three offices. The cost is 100 pounds per equipment.
Total cost of equipment = 3*100 = 300 pounds ..........> I

2- One switchboard. The cost is 333 pounds.
Total cost of switchboard = 333 pounds ...............> II

3- Total cost excluding taxes can be calculated by adding I and II as follows:
Cost excluding taxes = 300 + 333 = 633 pounds

4- Tax is 10% of the cost.
Tax amount = 0.1 * 633 = 63.3 pounds

5- Total cost including taxes = 633 + 63.3 = 696.3 pounds

6- Convert the cost to dollars.
We know that 1 pound is equivalent to 1.5$. To know the equivalence of 696.3 pounds, just do cross multiplication as follows:
Cost in dollars = (696.3*1.5) / 1 = 1044.45$