Question

Rita is planning to go on holiday and converts £400 to Egyptian Pounds.

Unfortunately, the holiday is cancelled so she converts this back to British pounds.

How much money does she lose in GB£?


Selling rate GB £1 = EG 9.787

Buying rate GB £ = 13.0409

Answer 1

Rita loses approximately £100.05 in the process of converting £400 to Egyptian Pounds and then back to British pounds, due to the difference in selling and buying exchange rates.

Step-by-step explanation:

To calculate how much money Rita loses in the conversion back to British pounds, we need to use the given selling and buying rates for the currency exchange.

First, Rita converts £400 to Egyptian Pounds using the selling rate:

£1 = EG 9.787, so £400 = 400 * 9.787 = EG 3914.8

Next, when the holiday is cancelled, she converts EG 3914.8 back to British pounds using the buying rate:

£1 = EG 13.0409, so EG 3914.8 = 3914.8 / 13.0409 ≈ £299.95

Now, we need to find the difference between the original amount in British pounds and what she gets back:

£400 - £299.95 = £100.05

Therefore, Rita loses approximately £100.05 in the process of converting back to British pounds.

Answer 2

Rita loses £100.09 due to the difference in the selling and buying exchange rates when she first converts £400 to Egyptian Pounds and then back to British pounds.

Step-by-step explanation:

The subject of the question is Mathematics, specifically focusing on currency conversion and the associated loss due to differing exchange rates. To calculate the amount of money lost by Rita, we follow these steps:

Convert the initial £400 to Egyptian Pounds using the selling rate: 400 * 9.787 = 3914.8 EG£.

Convert the Egyptian Pounds back to British pounds using the buying rate: 3914.8 / 13.0409 = £299.91 (rounded to two decimal places).

Determine the loss by subtracting the final amount from the initial amount: 400 - 299.91 = £100.09 lost due to the exchange rate difference.

Rita has lost £100.09 when converting her money back to British pounds.