Daniel planned a trip to Portugal in June. In January, he exchanged 12000 Canadian dollars (CAD) for European Dollars (EUR) when the exchange rate was 1 CAD = 0.70 EUR. In February, he exchanged another 1500 Canadian dollars for Euros when the exchange rate was 1 CAD = 0.75 EUR. In April, Daniel had to cancel the trip. He exchanged all his Euros for Canadian dollars when the exchange rate was 1 CAD = 0.80 EUR.
(a)Did Daniel suffer a loss or a gain when he exchanged his Euro back to Canadian dollars?
(b) How much of a loss or gain?
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Answer:
In January
EUR =12000 *0.70 =8400
IN FEBRUARY
EUR=1500*0.75=1125
Total EUR Daniel have =8400+1125=9525EUR
Now in April he exchange all EUR TO CAD
CAD = 9525/0.80=11906.25 CAD
Total no of CAD he exchange = 12000+1500=13500
a)yes denial suffer a loss
b) 13500-11906.25= 1593.75 CAD
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