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Faith sees an item priced at £24.50 or €32.50. she considers changing pounds to euros to buy it, at a rate of exchange of £1 = €1.30.
a) Calculate the value of £24.50 in euros at this exchange rate.
b) Convert the item's price in euros to pounds sterling at the exchange rate given.
c) State which currency she should use to buy the item.
d) State the saving made, in the currency chosen.
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The Wall Street Journal reports that the rate on three-year Treasury securities is 5.25 percent and the rate on four-year Treasury securities is 5.50 percent. The one-year interest rate expected in three years
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