Suppose the U. S. dollar–euro exchange rate is 1.20 dollars per euro, and the U. S. dollar–Mexican peso rate is 0.10 dollars per peso. What is the euro–peso rate?

0.083 euros

Explanation:

Data provided in the question

The U.S. dollar–euro exchange rate is 1.20 dollars per euro

The U.S. dollar–Mexican peso rate is 0.10 dollars per peso

Since the U.S. dollar–euro exchange rate is 1.20 dollars per euro

The computation of the euro-peso rate is shown below:

That means,  

$1.20 = 1 euro

So,

$1 = 1 ÷ $1.20 euro

$1 = 0.83 euros     (1)

Now U.S. dollar–Mexican peso rate is 0.10 dollars per peso

That means,

$0.10 = 1 peso

$1 = 1 ÷0.10 peso

$1 = 10 pesos   (2)

Now equate these above two equations

0.83 euros = 10 pesos

i.e

10 pesos = 0.83 euros

1 peso = 0.83 ÷10 euros

So,

1 peso = 0.083 euros

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