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Suppose S(CHF/USD) = 1.2040/50. What is the amount of CHF that a customer will receive if he wishes to sell USD 250,000? Choose the closest answer to your calculations.Group of answer choicesCHF 301,000.CHF 207,469.CHF 301,250.CHF 207,641.

Question

Suppose S(CHF/USD) = 1.2040/50. What is the amount of CHF that a customer will receive if he wishes to sell USD 250,000? Choose the closest answer to your calculations.Group of answer choicesCHF 301,000.CHF 207,469.CHF 301,250.CHF 207,641.

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Solution

The given exchange rate is S(CHF/USD) = 1.2040/50. This means that 1 USD is equivalent to 1.2040 CHF when buying, and 1.2050 CHF when selling.

The customer wants to sell USD 250,000.

To find out how much CHF the customer will receive, we multiply the amount of USD by the selling rate:

250,000 USD * 1.2050 CHF/USD = CHF 301,250.

So, the customer will receive approximately CHF 301,250. Therefore, the closest answer is CHF 301,250.

This problem has been solved

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