On a cross-channel ferry, Mercy sees an item she wants to buy. It is priced at 24.50 or 32. Mercy considers changing pounds to euros to buy it, at a…

On a cross-channel ferry, Mercy sees an item she wants to buy. It is priced at £24.50 or €32.50.

Mercy 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 Mercy should use to buy the item.

(d) State the saving made, in the currency chosen.