A British made automobile is priced at $20,000 British pounds, and a comparable US made car costs $26,000. One?
(2011-03-15 14:30:18) 1. Says: A British made automobile is priced at $20,000 British pounds, and a comparable US made car costs $26,000. One pound trades for $1.50 in the foreign exchange market. Find the real exchange rate from the perspective of the US, and from the perspective of Great Britain. Which country's cars are more competitively priced?2. Says: Right now the exchange is sitting at 0.6226pounds per 1USD. The banks will usually charge a fee of 2-3cents, so you're looking at 0.65pounds per 1USD. 26,000 x 0.65 = $16900. This means that the better bargain, the most competitively priced car, is in the US.20,000 - 16,900 = $3,100 in savings.
But if you were looking to purchase a car in the US from the UK, with shipping it'd almost not be worth it. Tag: A British made automobile is priced at $20,000 British pounds, and a comparable US made car costs $26,000. One?