The Channel Tunnel or \"Chunnel\" passes underneath the English Channel between
ID: 2817512 • Letter: T
Question
The Channel Tunnel or "Chunnel" passes underneath the English Channel between Great Britain and France, a land-link between the Continent and the British Isles. One side is therefore an economy of British pounds, the other euros. If you were to check the Chunnel's rail ticket Internet rates you would find that they would be denominated in U.S. dollars (USD). For example, a first class round trip fare for a single adult from London to Paris via the Chunnel through RailEurope may cost
USD 173.00USD173.00.
This currency neutrality, however, means that customers on both ends of the Chunnel pay differing rates in their home currencies from day to day. What is the British pound and euro denominated prices for the
USD 173.00USD173.00
round trip fare in local currency if purchased on the following dates at the accompanying spot rates drawn from the Financial
Times?
(Click on the Date of Spot Rate British Pound Spot Rate (£/$) Euro Spot Rate (€/$)
Monday 0.5685 0.8272
Tuesday 0.5699 0.8254
Wednesday 0.5801 0.8382
icon to import the table into a spreadsheet.) provided above monday - tuesday -wed
Date of Spot Rate
British Pound Spot Rate (£/$)
(euro€/$)
Monday
0.56850.5685
0.82720.8272
Tuesday
0.56990.5699
0.82540.8254
Wednesday
0.58010.5801
0.83820.8382
Calculate the round trip RailEurope train fare in
pound£
and
euro€
below:(Round to two decimal places.)
Spot Rate
Spot Rate
British
Continental
Date of Spot Rate
(£/$)
(€/$)
Train Fare
Train Fare
Monday
0.5685
0.8272
Date of Spot Rate
British Pound Spot Rate (£/$)
Euro Spot Rate(euro€/$)
Monday
0.56850.5685
0.82720.8272
Tuesday
0.56990.5699
0.82540.8254
Wednesday
0.58010.5801
0.83820.8382
Explanation / Answer
Answer:
Trip fare = $173 Day Exchange rate Amount to be paid Monday Pound 0.5685 In pound 98.3505 Euro 0.8272 In Euro 143.1056 Tuesday Pound 0.5699 In pound 98.5927 Euro 0.8254 In Euro 142.7942 Wednesday Pound 0.5801 In pound 100.3573 Euro 0.8382 In Euro 145.0086Related Questions
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