8-60. If the European euro is worth Canadian $1.60 and a Canadian dollar trades for U.S. $0.75, what is the exchange rate from U.S. dollars to European euros? (8.6)

(a) $2.13

(b) $1.44

(c) $1.20

(d) $0.95 8-61. Today the euro costs $1.35. If the dollar gains strength against the euro at a rate of 3% per year, how much will the euro cost (in dollars) after five years? (8.6)

(a) $1.20

(b) $1.41

(c) $1.16

(d) $1.09