The transaction fees are reflected in the exchange rate

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Reference no: EM131851707

If you travel to London, U.K. and arrive at Heathrow Airport, and assuming you want to to purchase goods and services while on your 3-day vacation there, you decide to “exchange” your U.S. dollars for euros. You see that it takes $1.25 to purchase 1 euro. If you have $100, how many euros will you receive (the transaction fees are reflected in the exchange rate)? After shopping, you have 40 euros left. How many dollars will you receive back at the airport, as you depart to the U.S.?

Reference no: EM131851707

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