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hello in this video were going to use the exchange rate to convert a foreign price into us dollars and then vice versa in italy the price of an italian meal is 30 euros in the u.s the price of a disney vacation is 2 000 u.s dollars suppose the exchange rate is 0.88 euros per dollar what is the price of the italian meal in us dollars and what is the price of the disney vacation in euros given our exchange rate information on top here we can write this simple formula 0.88 euros equals one us dollar we can also take this equation here and divide through by 0.88 so if we divide through by 0.88 1 divided by 0.88 is 1.136 in other words one euro will get you back one dollar and roughly 14 cents what is the price of the italian meal in dollars the italian meal is 30 euro and here we have an equation where it says a euro equals 1.136 so were going to make a substitution in for euro were going to plug in that 1.136 do the math and we see that 30 euro meal in italy has a price of 34.9 cents 3