Question

if you can exchange 104.51 us dollars for 1,322.14 mexican pesos, what is the exchange rate of the us dollar to the mexican peso, to three decimal places?
a. 1:12.650
b. 1:1.427
c. 1:0.079
d. 1:0.008

Explanation:

Set up the exchange ratio

Using the Currency Exchange Rates knowledge point

$$ \text{Ratio} = \frac{\text{USD}}{\text{MXN}} = \frac{104.51}{1322.14} $$

Calculate the unit rate

Using the Currency Conversion knowledge point

$$ \frac{104.51}{1322.14} \approx 0.079046 $$

$$ 1 \text{ MXN} \approx 0.079 \text{ USD} $$

$$ \text{Exchange Rate (USD to MXN)} = 1:0.079 $$

Answer:

• a. 1:12.650
• b. 1:1.427
• c. 1:0.079 (Correct answer)
• d. 1:0.008