Answered

The costs of the five most popular items at an airport gift shop include a \$12.99 decorative mug, a \$2.99 postcard, a \$3.49 keychain, a \$15.29 t-shirt, and a \$7.89 teddy bear. Everleigh is interested in seeing the cost of the items in another currency. The most current currency conversion rates for 1 U.S. dollar are the following:




Country		Currency NameExchange Rate

China		Yuan6.4651

Denmark		Krone6.3394

Sweden		Krona8.6964






Choose one airport gift shop souvenir and one country. Convert the cost of the chosen souvenir into the currency of that country. Show all necessary mathematical calculations.

Verified Answer :

  • Select the T-shirt costing \(\$15.29\) and the exchange rate for Sweden (8.6964).
  • Use the formula \(\text{Cost}_{\text{Krona}} = \text{Cost}_{\text{USD}} \times \text{Exchange Rate}\).
  • Calculate the final value: \(15.29 \times 8.6964 = 132.967956\).
  • Round the result to two decimal places, obtaining a final cost of \(\boxed{132.97}\).

Explanation

  1. Problem Analysis and Objective

The problem asks us to convert the cost of a selected souvenir item from U.S. dollars into the currency of a chosen foreign country. We are provided with the costs of five items in USD and the exchange rates for three foreign currencies:

  • Souvenir Items: Decorative Mug (\$12.99), Postcard (\$2.99), Keychain (\$3.49), T-shirt (\$15.29), and Teddy Bear (\$7.89).
  • Currency Exchange Rates (per 1 USD):
  • China (Yuan): 6.4651
  • Denmark (Krone): 6.3394
  • Sweden (Krona): 8.6964

To find the cost in a foreign currency, we use the formula: \(\text{Cost}_{\text{Foreign}} = \text{Cost}_{\text{USD}} \times \text{Exchange Rate}\).

  1. Calculation and Conversion

We will select the T-shirt, which costs \(\$15.29\), and convert its price into Swedish Krona. The exchange rate for Swedish Krona is 8.6964 per 1 U.S. dollar. Using the conversion formula:
\[ \text{Cost}_{\text{Krona}} = 15.29 \times 8.6964 \]
Performing the multiplication, we get:
\[ 15.29 \times 8.6964 = 132.967956 \]
Rounding this to two decimal places, which is standard for currency, the cost is approximately 132.97 Swedish Krona.

  1. Conclusion

By multiplying the U.S. dollar price of the T-shirt by the exchange rate for Sweden, we have successfully converted the price. The final cost of the T-shirt in Swedish Krona is \(\boxed{132.97}\).

Examples

Understanding currency conversion is an essential life skill for travelers, international shoppers, and business professionals. Whether you are budgeting for a vacation, comparing prices online from different countries, or conducting international trade, knowing how to apply exchange rates helps you manage your finances effectively and make informed purchasing decisions based on real-world market values.

Related Questions