You return from trip with 4000 Mexican pesos How much are your pesos worth in U,S. dollars? Use the exchange rate shown below: Currency U.S: dollars per Mexican peso Mexican pesos per U.S: dollar Mexican peso 0,07037 14.21 The 4000 Mexican pesos are equivalent to about (Round to the nearest cent as needed
The Correct Answer and Explanation is:
To find out how much 4000 Mexican pesos are worth in U.S. dollars, we use the exchange rate provided:
1 Mexican peso = 0.07037 U.S. dollars
So, to convert 4000 Mexican pesos to U.S. dollars:4000×0.07037=281.484000 \times 0.07037 = 281.484000×0.07037=281.48
✅ Final Answer:
4000 Mexican pesos are equivalent to approximately $281.48 U.S. dollars.
💬 Explanation
When converting currency, it’s essential to use the correct exchange rate depending on the direction of the conversion. In this case, you’re converting from Mexican pesos to U.S. dollars, so you need the rate that tells you how many U.S. dollars one Mexican peso is worth. According to the data provided:
- 1 Mexican peso = 0.07037 U.S. dollars
- 1 U.S. dollar = 14.21 Mexican pesos
Both of these exchange rates are reciprocal (they match when inverted). Since you’re starting with Mexican pesos, you multiply the number of pesos you have by the U.S. dollar value of 1 peso.4000 pesos×0.07037 USD/peso=281.48 USD4000 \, \text{pesos} \times 0.07037 \, \text{USD/peso} = 281.48 \, \text{USD}4000pesos×0.07037USD/peso=281.48USD
This gives you the exact U.S. dollar amount you would receive if you exchanged your pesos at that rate.
Rounding to the nearest cent is important in financial transactions, especially in currencies like the U.S. dollar, which is divided into 100 cents. So we round $281.476 to $281.48.
It’s also useful to understand the context of the second exchange rate. If, instead, you had U.S. dollars and wanted to buy pesos, you’d use the 14.21 pesos per dollar rate. But for this problem, that’s not needed.
Currency exchange rates fluctuate daily due to global economic factors, so your actual amount might vary slightly if you exchange money at a bank or currency exchange service, which may also charge fees. Nonetheless, using the rate of 0.07037 gives a solid and accurate estimate for this conversion.
