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22 October, 19:53

Assume €1 = $1.1364 and $1 = S$1.2408. A new coat costs S$213 in Singapore. How much will the identical coat cost in euros if absolute purchasing power parity exists?

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  1. 22 October, 20:39
    0
    151.05 euro

    Explanation:

    The computation is shown below:

    Data provided in the question

    €1 = $1.1364

    $1 = $1.2408

    And the new coat cost is $213 in Singapore

    So, by considering the above information

    The 1 euro = $1.1364 * $1.2408 = $1.4100512

    So,

    $1 = 1 : $1.4100512 euro = 0.709194

    So, the identical coat cost is

    = $213 * 0.709194

    = 151.05 euro
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