In 2002, $1 = 1 euro, and in 2006, $1 = 0.6 euro. If a Ferrari cost $100,000 in 2002, then it should have cost ______ in 2006.
A) $160,000
B) $140,000
C) $166,666
D) $60,000

Question

Quizplus · Accepted Answer

In 2002, 1 dollar was equal to 1 euro, so a $100,000 Ferrari would also cost 100,000 euros. In 2006, 1 dollar was equal to 0.6 euro, meaning to get the same amount in euros (100,000), you would need more dollars because each dollar buys less euro. To find out how many dollars you need to get 100,000 euros at the 2006 exchange rate, divide 100,000 euros by 0.6 euro/dollar, which equals approximately $166,666.

In 2002, $1 = 1 Euro, and in 2006, $1