On February 16, 2016, $1 USD = 113.90 yen, and £1 GBP = 162.71 yen. What was the value of $1 in British pounds?

Rationale

$1 USD is equivalent to approximately 0.7 GBP.

To find the value of $1 in British pounds, we first convert dollars to yen and then yen to pounds. Given that $1 equals 113.90 yen and £1 equals 162.71 yen, we can calculate the dollar value in pounds by dividing 113.90 by 162.71, which results in approximately 0.7 GBP.

A (0.7) CORRECT

This choice is correct because it accurately reflects the conversion of $1 into British pounds based on the provided exchange rates. By calculating ( frac{113.90}{162.71} ), we find the value to be about 0.699, which rounds to 0.7 GBP.

B (0.9) YOUR ANSWER

This choice is incorrect because it overestimates the value of the dollar in pounds. The calculation shows that the actual value is lower than 0.9, as demonstrated by the division of yen values.

C (1.2) YOUR ANSWER

This choice is not accurate because it significantly overvalues the dollar against the pound. The conversion shows that $1 does not reach 1.2 pounds, as the resulting figure is much less than this.

D (1.4) YOUR ANSWER

This choice is incorrect because it suggests an even greater overvaluation of the dollar in comparison to the pound. The calculation clearly shows that $1 does not equate to 1.4 pounds, which is inconsistent with the given exchange rates.

Conclusion

The conversion from USD to GBP is grounded in the exchange rates provided, leading to the conclusion that $1 USD equals approximately 0.7 GBP. Choices B, C, and D misrepresent this relationship by suggesting values that exceed the calculated conversion, highlighting the importance of accurate currency conversion in financial contexts.

On February 16, 2016, $1 USD = 113.90 yen, and £1 GBP = 162.71 yen. What was the value of $1 in British pounds?

$1 USD is equivalent to approximately 0.7 GBP.

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