Answered

A watch was priced at €430 on website G, based in Germany and at US$600 on website U, based in the United States. Siti lives in Singapore and wishes to purchase the watch from either of these websites. She found that the exchange rates are S$1 = €0.6368 and S$1 = US$0.7478.
(a) Which website offers a better buy? Explain your answer.
(b) Both websites charge delivery fees to send the watch to Singapore. Find the maximum difference in the delivery fees so that the website in part (a) remains a better buy.​



Answer :

simplify the fraction 84/96

reinhard10158

Step-by-step explanation:

Singapore $1 = €0.6368

so, Singapore $x = €0.6368x = €430

x = 430/0.6368 = S$675.2512563...

Singapore $1 = US$0.7478

so, Singapore $x = US$0.7478x = US$600

x = 600/0.7478 = S$802.3535705...

if she bought the watch in Germany, it would cost her

S$675.2512563... ≈ S$675.25

if she bought the watch in the USA, it would cost her

S$802.3535705... ≈ S$802.35

(a) the Germany website offers her the better deal.

as expected. because the exchange rates are not that much different, but the sales prices of the watch are.

ultimately, the exchange rate to US$ is better for her (closer to a 1:1 to S$), but the sales price difference is so large, that it did not help enough.

(b)

as we can see, the difference in value is

S$802.35 - S$675.25 = S$127.10

the Germany website remains the better deal, if the difference in the delivery fees compared to the USA site is not more than that.

now we need to calculate that difference back to € and US$ :

S$127.10 = 127.1×0.6368 = €80.93728 ≈ €80.94

S$127.10 = 127.1×0.7478 = US$95.04538... ≈ US$95.05

the German website remains the best offer, if it does not charge US$95.05 (= €80.94) more in delivery fees than the USA site does.

Other Questions