Question

A tourist changes $\$$500 to euros when the exchange rate is 1 euro = 1.0697. Calculate how many euros he receives?

Answer 1

Hint:For solving this problem, it is essential to be aware about the basic arithmetic operations and concepts involving currency conversion from one currency to another. In this case, we would do conversion from dollars to euros based on the given exchange rate.

Complete step-by-step answer:
We use the unitary method to solve the problem. Basically, the unitary method is a technique for solving a problem by first finding the value of a single unit, and then finding the necessary value by multiplying the single unit value. In essence, this method is used to find the value of a unit from the value of a multiple, and hence the value of a multiple. To explain this definition,
Let’s say, 2 bags cost 50 rupees and suppose we want to know how many bags we can buy from 75 rupees. What we do is, we see how many bags can be bought for 1 rupee. Then we multiply that by 75. Thus,
For 50 rupees, we have 2 bags
For 1 rupee, we have $\dfrac{1}{25}$ bags
For 75 rupees, we have $\dfrac{75}{25}$ = 3 bags
We use a similar methodology to solve the given problem in hand.
We want to know how many euros does 1.0697 (exchange rate given)
Thus $\$1 = {\dfrac{1}{1.0697}}$ euros
Thus, $\$500 = {\dfrac{500}{1.0697}}$ = 467.42 euros
Hence, the tourist receives 467.42 euros.

Note: The use of unitary method is only applicable when the quantities are directly related to each other. In case a quantity is directly related to square/cube/inverse or any other operations, the unitary method yields inaccurate results. For example, if x varies as a square of y, we cannot use a unitary method between x and y variables.