Assume that today you can exchange $1 for £.5926 and that last week, £1 was worth $1.6729. How much profit or loss would you now have in pounds if you had converted £100 into dollars last week and then converted the dollars back into pounds this week?

Question

Quizplus · Accepted Answer

Last week, £1 was worth $1.6729, so £100 would be worth $167.29. 
This week, $1 can be exchanged for £.5926, so $167.29 can be exchanged for £98.88. 
Therefore, the loss in pounds would be £100 - £98.88 = £1.12 
However, the question asks for the profit or loss in pounds, so the answer is actually a £.86 loss ($1.12 converted back into pounds using last week's exchange rate of £1 = $1.6729, which gives £.66).

Assume That Today You Can Exchange $1 for £