explaining how to convert currency\nthe ruiz family is exchanging euros for us dollars. the exchange rate is…

explaining how to convert currency\nthe ruiz family is exchanging euros for us dollars. the exchange rate is 1 euro equals 1.35261 usd. since the ruiz family knows that usd are stated to the nearest hundredth of a dollar, they used the conversion ratio $\frac{1.35 usd}{1 euro unit}$. will this give the ruiz family the correct exchange? explain.

explaining how to convert currency\nthe ruiz family is exchanging euros for us dollars. the exchange rate is 1 euro equals 1.35261 usd. since the ruiz family knows that usd are stated to the nearest hundredth of a dollar, they used the conversion ratio $\frac{1.35 usd}{1 euro unit}$. will this give the ruiz family the correct exchange? explain.

Answer

Answer:

No, it will not give the correct exchange.

Explanation:

Step1: Analyze the exchange rate

The actual exchange rate is 1 euro = 1.35261 USD.

Step2: Consider the rounded - off ratio

The family is using 1.35 USD per euro. The actual rate has a value in the thousandths place (0.00261) which is being ignored when using 1.35. For example, if they exchange 100 euros, with the actual rate they would get 100×1.35261 = 135.261 USD. With the ratio they are using, they would get 100×1.35 = 135 USD. So, the conversion ratio they are using will give an incorrect (lower) amount of US dollars.