P19-3

Exchange rates Fred Nappa is planning to take a wine-tasting tour through Ital this summer. The tour will cost 2,750 euros () and includes transportation, levels, and a guide. Fred estimates that round-trip airfare from his home in North Carolina to Rome, Italy, will be $1,490; he also will incur another $300 (U.S.) in incidental travel expenses. Fred estimates the cost of meals in Ital to be about 500, and he will take an additional $1,000 to cover miscellaneous expenditures. Currently, the exchange rate is US$1.3411/1.00 or .7456/US$1.00).

a. Determine the total dollar cost of the trip to Italy.

b. Determine the amount of ueros () Fred will need to cover meals and miscellaneous expenditures.