Question

Tess, who lives in the United States, is on a trip to Europe. She is going first to Germany, where the currency is the euro (€), and then to Switzerland, where the currency is the Swiss franc (CHF). As she travels from Germany to Switzerland, she finds that she has the equivalent of $527 remaining in euros, which she wishes to convert to Swiss francs. If, at the time of Tess’s exchanges, the exchange rate of the US dollar to the euro is 1:0.6957 and the exchange rate of the euro to the Swiss franc is 1:1.4755, how many Swiss francs does she have? Round all currencies to two decimal places.
a.
366.63 francs
b.
513.39 francs
c.
540.96 francs
d.
777.59 francs

Answer 1

First convert $527 to euros using 1 USD = 0.6957 EUR:
527 × 0.6957 = 366.6339 → 366.63 EUR (rounded to two decimals).

Then convert euros to Swiss francs using 1 EUR = 1.4755 CHF:
366.63 × 1.4755 = 540.962565 → 540.96 CHF (rounded to two decimals).

Answer: c. 540.96 francs