Sanjay has 90 euros to spend before he flies back to the United States. He wishes to purchase jewelry priced at $165 (U.S.) in a duty-free shop at the airport. Euros can be bought for $1.34 and sold for $1.24. The owner of the duty-free shop tells Sanjay that the jewelry can be purchased for 90 euros plus $41 (U.S.). Is this a good deal for Sanjay? Assume there is a 7.5 euro commission on the exchange transaction. If Sanjay accepts the deal, he will pay an equivalent of $ (Round to the nearest dollar.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Sanjay has 90 euros to spend before he flies back to the United States. He wishes to purchase jewelry priced at $165 (U.S.) in a duty-free shop at
the airport. Euros can be bought for $1.34 and sold for $1.24. The owner of the duty-free shop tells Sanjay that the jewelry can be purchased for 90
euros plus $41 (U.S.). Is this a good deal for Sanjay? Assume there is a 7.5 euro commission on the exchange transaction.
If Sanjay accepts the deal, he will pay an equivalent of $. (Round to the nearest dollar.)
Transcribed Image Text:Sanjay has 90 euros to spend before he flies back to the United States. He wishes to purchase jewelry priced at $165 (U.S.) in a duty-free shop at the airport. Euros can be bought for $1.34 and sold for $1.24. The owner of the duty-free shop tells Sanjay that the jewelry can be purchased for 90 euros plus $41 (U.S.). Is this a good deal for Sanjay? Assume there is a 7.5 euro commission on the exchange transaction. If Sanjay accepts the deal, he will pay an equivalent of $. (Round to the nearest dollar.)
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