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you have bought £400 of american dollars for the trip. the exchange rate was £1 buys $1.88. the trip was cancelled. you have found out that the foreign exchange bureau will buy back at £1 for $1.95. If you convert the dollars back into pounds, calculate the loss thta will be made in pounds

 Dec 9, 2016
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You got your signs confused. You bought $400 US dollars.

$400 / 1.88 =212.77 the cost in pounds.

$400 / 1.95 =205.13 pounds - the cost of purchasing them back.

212.77 - 205.13 = 7.64 pounds - your loss.

 Dec 9, 2016

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