Question

Identical pairs of boots are sold in London, in Geneva and in Paris. These boots have a price of £115 in London. 189 Swiss francs in Geneva and 174 euros in Paris. The exchange rates are £1=1.39 Swiss francs,£1=1..27 euros. Are the boots the best value for money in London or on Geneva or in Paris? You must show how you get your answer.

Answer 1

Answer:

London

Step-by-step explanation:

The givens are:

• Price is 115 pounds in London.
• Price is 189 Franks in Geneva.
• Price is 174 Euros in Paris.
• 1 pound = 1.39 Franks.
• 1 pound = 1.27 Euros.

Let the reference currency be the English pound, therefore, we will convert the Franks and Euros to pounds with the given exchange rates.

In Geneva: the price will be = 189/1.39 = 135.97 ≅ 136 pounds.

In Paris: the price will be = 174/1.27 = 137 pounds.

Therefore, the boots have the best value for money in London.

Answer 2

Answer:

London

Step-by-step explanation: