The current exchange rate between the euro and the U.S. dollar is 0.925884. This means that one dollar can buy 0.925884 euros. How many dollars would you get for 1,000 euros?
The Correct Answer and Explanation is:
To determine how many U.S. dollars you would get for 1,000 euros, you need to use the reciprocal of the given exchange rate. The exchange rate provided is:
1 U.S. dollar = 0.925884 euros
This means that to find how many U.S. dollars you get per euro, we take the reciprocal: 10.925884≈1.08013\frac{1}{0.925884} \approx 1.08013
So:
1 euro ≈ 1.08013 U.S. dollars
Now, multiply the number of euros (1,000) by this rate: 1,000×1.08013=1,080.131,000 \times 1.08013 = 1,080.13
Answer: You would get approximately 1,080.13 U.S. dollars for 1,000 euros.
Explanation
Understanding currency exchange rates is essential in international finance, travel, and business. The exchange rate provided here tells us how many euros one U.S. dollar can buy, which is 0.925884 euros per dollar. This kind of quote is known as a direct quote for someone dealing in U.S. dollars, meaning it shows the value of foreign currency (in this case, the euro) per one unit of the home currency (U.S. dollar).
However, to convert euros into U.S. dollars—essentially doing the reverse transaction—we need the inverse of the rate. The reciprocal of 0.925884 is approximately 1.08013. This means each euro is worth about 1.08013 U.S. dollars.
To calculate how many dollars you would receive for 1,000 euros, simply multiply the number of euros by the rate: 1,000×1.08013=1,080.131,000 \times 1.08013 = 1,080.13
This indicates that converting 1,000 euros at the current exchange rate would yield approximately 1,080.13 U.S. dollars.
It’s important to note that actual currency exchanges through banks or money services often involve transaction fees or less favorable rates, meaning the amount received could be slightly lower in practice. Nonetheless, this calculation provides a clear theoretical value based on the mid-market exchange rate and is helpful for budgeting, investment decisions, or evaluating foreign earnings.
