Georgia Assessments for the Certification of Educators GACE Practice Test

If the exchange rate between the Euro (€) and the U.S. dollar ($) is $2.5 to € 1, how many dollars would it take to purchase a plane ticket that costs € 1580.00?

1. $3,950.00

2. $39,500.00

3. $395.00

4. $632.00

The correct answer is: $3,950.00

To determine how many dollars are needed to purchase a plane ticket costing €1580.00 at an exchange rate of $2.5 to €1, you can use a straightforward multiplication process. The exchange rate implies that for every Euro, it costs $2.5 in U.S. dollars. You multiply the cost of the ticket in Euros by the exchange rate in order to convert it into dollars: €1580.00 × $2.5/€1 = $3950.00. This calculation shows that purchasing the ticket would indeed require $3950.00. Thus, this approach effectively demonstrates how to convert the amount in Euros to its equivalent in U.S. dollars, confirming that the correct answer is $3950.00.