Kari is on a trip to Italy. She has made a list of cities she would like to tour while she is there, as well as how much she expects it will cost her (between transportation, admission, souvenirs, and so on) to see each one. The prices are listed in either US dollars ($) or euros (€). Kari has a budget of $585 set aside for sightseeing.
She would also like to tour Genoa as well, which would cost her €60.85. If the conversion rate of US dollars to euros at the time of Kari's visit is 1:0.6859, how will this affect her budget? Round all dollar values to the nearest cent.
a. Kari can see Genoa and have $60.33 left in her budget.
b. Kari can see Genoa and have $41.38 left in her budget.
c. Kari has almost exactly enough left in her budget to see Genoa.
d. Kari cannot afford to see Genoa, because it would put her $84.48 over budget.
Answer (2)
Kari cannot afford to see Genoa with her current budget of $585, as the combined costs exceed her budget limit. The calculated expense for the Genoa tour puts her significantly over her planned budget. Thus, she should consider adjusting her travel plans or budget.
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Convert all tour costs to US dollars using the conversion rate of 1 = €0.6859 .
Calculate the US dollar cost for Vatican, Rome, Milan, and Genoa tours.
Sum all tour costs in US dollars, including Naples and Venice.
Subtract the total cost from Kari's budget to find the remaining amount, which is $\boxed{ 0.04} .
Explanation
Problem Analysis Kari has a sightseeing budget of $585. We need to determine if she can afford to see Genoa, given the costs of the other tours and the currency conversion rate.
Currency Conversion First, we need to convert all the costs to the same currency, US dollars. The conversion rate is 1 = €0.6859 . To convert from euros to dollars, we divide the euro amount by 0.6859.
Vatican Tour Cost The cost of the Vatican tour in US dollars is: \frac{68.77}{0.6859} = $100.26
Rome Tour Cost The cost of the Rome tour in US dollars is: \frac{95.41}{0.6859} = $139.10
Milan Tour Cost The cost of the Milan tour in US dollars is: \frac{49.69}{0.6859} = $72.44
Genoa Tour Cost The cost of the Genoa tour in US dollars is: \frac{60.85}{0.6859} = $88.72
Naples and Venice Tour Costs The costs of the Naples and Venice tours are already in US dollars: Naples = $71.06, Venice = $113.38.
Total Cost Calculation Now, we calculate the total cost of all tours in US dollars: 100.26 + 139.10 + 71.06 + 113.38 + 72.44 + 88.72 = $584.96
Remaining Budget Finally, we calculate the remaining budget: 585 - 584.96 = $0.04
Conclusion Kari has almost exactly enough left in her budget to see Genoa.
Examples
Understanding currency conversions and budgeting is crucial when planning international trips. For instance, if you're visiting multiple countries with different currencies, converting all expenses to a single currency (like your home currency) helps you track spending and stay within your budget. This is also useful in comparing prices of goods or services across different locations to make informed decisions and manage your finances effectively while traveling.
