a) If one Australian dollar can buy 0.4 Euros and a US dollar costs 1.3 Australian dollars, how many Euros is needed to buy one US dollar? 

b. If a tonne of barley is $AUD300, and a US dollar is worth 1.45 Australian dollars, how many US dollars would an Australian exporter of barley receive for 1000 tonnes of barley sold in the US? 

 

*a. 0.52 Euros are needed to buy 1 US dollars [0.52€=1US$]

*b. For 1000 tonnes of barley sold in US, the Australian exporter will receive US$ 206,900

Step-by-step explanation

*a.one Australian dollar can buy 0.4 Euros

1AU$=0.4 €

1US$=1.3AU$

Converting 1AU$ to US$ will be:

1US$=1.3AU$

1AU$=(1/1.3US$)

1AU$=0.769 US$ and 1AU$=0.4 €

exchange rate for the 3 currencies:

1AU$=0.4€=0.769US$

Euros to US$: 0.4€=0.769US$

=1US$

1US$=(1×0.4/0.769)€

=0.52€

0.52€=1US$

0.52 Euros will buy 1 US dollars.

*b.A tonne of barley $AUD300

US dollar = 1.45 Australian dollars

1US$=$AUD 1.45

Convert the $AUD300 to US$=(1×300/1.45)

=206.90 US$

1 tonne=$AUD 300=US $206.90

1 tonne=$US $206.90

1000 tonnes=(1000×206.90)

=US$ 206,900