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While abroad in London, Samson exchanged 250 dollars into pounds at an exchange rate of 1.25 dollars : 1 pound. Samson

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by BTGmoderatorDC » Tue Apr 28, 2020 1:16 am

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While abroad in London, Samson exchanged 250 dollars into pounds at an exchange rate of 1.25 dollars : 1 pound. Samson spent 25% of his pounds over the course of his trip. When he returned to the United States, pounds were now 20% more valuable. How much money, in dollars, did Samson have after the second exchange? Assume that there was no cost for either currency exchange.

A. 200 dollars
B. 210 dollars
C. 225 dollars
D. 240 dollars
E. 250 dollars


OA C

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Re: While abroad in London, Samson exchanged 250 dollars into pounds at an exchange rate of 1.25 dollars : 1 pound. Sams

by Scott@TargetTestPrep » Fri May 01, 2020 3:17 pm
BTGmoderatorDC wrote: ↑
Tue Apr 28, 2020 1:16 am
 While abroad in London, Samson exchanged 250 dollars into pounds at an exchange rate of 1.25 dollars : 1 pound. Samson spent 25% of his pounds over the course of his trip. When he returned to the United States, pounds were now 20% more valuable. How much money, in dollars, did Samson have after the second exchange? Assume that there was no cost for either currency exchange.

A. 200 dollars
B. 210 dollars
C. 225 dollars
D. 240 dollars
E. 250 dollars


OA C

Source: Veritas Prep
In the first exchange, Samson got 250/1.25 = 200 pounds. Since he spent 25% of it, he has 200 x 0.75 = 150 pounds left. Since pounds were 20% more valuable when he returned to the U.S., he got 150 x 1.25 x 1.2 = 150 x 1.5 = 225 dollars in the second exchange.

Answer: C

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