Fumie is going for a holiday to Great Britain. She changes \({\text{100}}\,{\text{000}}\) Japanese Yen (JPY) into British Pounds (GBP) with no commission charged.

The exchange rate between GBP and JPY is

1 GBP = 129 JPY.

Calculate the value of \({\text{100}}\,{\text{000}}\) JPY in GBP.

At the end of Fumie’s holiday in Great Britain she has 239 GBP. She converts this back to JPY at a bank, which does not charge commission, and receives 30 200 JPY

(i)     Find the exchange rate of this second transaction.

(ii)     Determine, when changing GBP back to JPY, whether the exchange rate found in part (b)(i) is better value for Fumie than the exchange rate in part (a). Justify your answer.

\(\frac{{100\,000}}{{129}}\)     (M1)

\( = 775{\text{ (GBP)}}\)     (A1)     (C2)

[2 marks]

(i)     \(\frac{{30\,200}}{{239}}\)     (M1)

\(1 {\text{ GBP}} = 126 {\text{ JPY}}\)     (A1)

Note: Accept \(126\) (\({\text{JPY}}\)).

     Award (M1) for \(\frac{{239}}{{30\,300}}\).

     Award (A0) for \(1{\text{ JPY}} = 0 {\text{ GBP}}\)

(ii)     No, the part (b)(i) rate is not better value than the part (a) rate.     (A1)(ft)

\(30\,200 < 30\,831\)     (R1)

OR

No, the part (b)(i) rate is not better value than the part (a) rate.     (A1)(ft)

\(129 > 126\)     (R1)     (C4)

Note: Accept “part (a) rate is better” for the (A1)(ft).

     Follow through from part (b)(i).

     A numerical comparison must be seen to award (R1).

[4 marks]