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Georgia Ferguson lives in Atlanta, Georgia. She is in the market for a new car. She has decided to get either a Ford Mustang or

Georgia Ferguson lives in Atlanta, Georgia. She is in the market for a new car. She has decided to get either a Ford Mustang or a BMW 3-series coupe. The Mustang is made in Detroit, Michigan; the BMW 3-series coupe is made in Frankfurt, Germany. Georgia is concerned about the exchange rate. A BMW 3-series coupe costs 35,000 euro (EUR) and a Mustang costs 35,000 dollars (USD). Complete the following table to help Georgia decide which car to purchase.

Exchange RateCost of Mustang in USDCost of 3-series Coupe in USD
1 EUR = 1.08 USD

1 EUR = 1.07 USD

1 EUR = 1.06 USD

1 EUR = 1.05 USD

Georgia has $37,500 to spend on a car (not including the tax, tag, and Qtle). Under which exchange rates can she afford the BMW? 


If the United States were to implement a $500 tariff on cars from Germany (i.e. prices for cars from Germany would rise by $500 USD), what would it do to the price of the two cars, using the same exchange rates?

Exchange RateCost of Mustang in USDCost of 3-series Coupe in USD
1 EUR = 1.08 USD

1 EUR = 1.07 USD

1 EUR = 1.06 USD

1 EUR = 1.05 USD

Does the tariff change under which exchange rates Georgia can afford to purchase the BMW? Explain

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