The Swiss franc is selling for $.7681 and the British pound is selling for $1.6581. The cross rate between the franc and the pound is?
I figured out 2.16 but I have so much scribling over it I cant now refigure it out with our gettting it correct again. Can someone simplify these steps
To calculate the cross rate between the Swiss franc and the British pound, you need to compare the exchange rates between each currency and the US dollar.
Here are the steps to simplify the calculation:
1. Convert the Swiss franc exchange rate to US dollars: $0.7681/1 CHF.
2. Convert the British pound exchange rate to US dollars: $1.6581/1 GBP.
3. Divide the Swiss franc exchange rate in US dollars by the British pound exchange rate in US dollars: ($0.7681/1 CHF) ÷ ($1.6581/1 GBP).
4. Simplify the expression by multiplying the numerator and denominator by the reciprocal of the British pound exchange rate: ($0.7681 × 1 GBP) ÷ ($1.6581 × 1 CHF).
5. Calculate the cross rate by dividing the dollar amount of one British pound by the dollar amount of one Swiss franc.
After performing the calculation, the cross rate between the Swiss franc and the British pound is approximately 0.4636 GBP per CHF.