An American good with a price tag of $89 costs 809 pesos. The exchange rate must be approximately

Question

Quizplus · Accepted Answer

To find the exchange rate, we need to divide the cost in pesos by the cost in dollars:
809 pesos / $89 = 9.10 pesos/dollar
The only answer choice that is close to this value is B, which states that 1 peso is equal to 0.11 dollars. We can verify this by multiplying 0.11 dollars by 9.10 pesos/dollar:
0.11 dollars/peso x 9.10 pesos/dollar = 1 dollar
Therefore, the exchange rate is approximately $0.11 = 1 peso.

An American Good with a Price Tag of $89 Costs