CIMAPRO19-P03-1 Exam - Topic 5 Question 101 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 101
Topic #: 5

[All CIMAPRO19-P03-1 Questions]

A US company has to pay 500,000 for a new machine.

You have the following information on currencies.

EUR1 = 1.2300

EUR 1= USD1.6200

What is the cost of the machine in USD?

Give your answer to the nearest $.

A$658501, $658537

Show Suggested Answer

Suggested Answer: A

by Herminia at Jan 28, 2026, 01:51 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P03-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Merilyn

24 days ago

Yes, but we need to round it to the nearest dollar.

upvoted 0 times

...

Cecily

29 days ago

Wait, is that the final answer?

upvoted 0 times

...

Merlyn

1 month ago

Right! 500,000 * 1.6200 = 810,000 USD.

upvoted 0 times

...

Haydee

1 month ago

So, if EUR1 = USD1.6200, then 500,000 EUR is...

upvoted 0 times

...

Merilyn

1 month ago

I feel like I need to double-check my math.

upvoted 0 times

...

Cecily

2 months ago

But the rates are confusing.

upvoted 0 times

...

Merlyn

2 months ago

I think it's straightforward. Just convert EUR to USD.

upvoted 0 times

...

Haydee

2 months ago

This question is tricky.

upvoted 0 times

...

Nadine

4 months ago

Yup, that's the math!

upvoted 0 times

...

Dino

4 months ago

I thought it would be cheaper, honestly.

upvoted 0 times

...

Denny

4 months ago

Wait, are you sure about those conversions?

upvoted 0 times

...

Malcom

4 months ago

That's right, it's a big investment!

upvoted 0 times

...

Junita

4 months ago

The machine costs about $615,000!

upvoted 0 times

...

Jeannetta

4 months ago

$812,500? Sounds like a steal! Where can I get one of those machines?

upvoted 0 times

...

Mariko

5 months ago

$812,500 seems about right. Now I just need to figure out how to get my boss to approve the budget for this machine.

upvoted 0 times

...

My

5 months ago

I'm pretty sure the answer is $812,000. Gotta love those currency conversions!

upvoted 0 times

...

Justine

5 months ago

Looks like the machine is going to cost an arm and a leg!

upvoted 0 times

...

Nikita

5 months ago

The cost of the machine in USD is $812,500.

upvoted 0 times

...

Lonna

5 months ago

I believe we should use the exchange rates given, but I can't recall if we need to divide or multiply. This is tricky!

upvoted 0 times

...

Toshia

5 months ago

Wait, does that mean we need to find out how many EUR 500,000 is first? I'm a bit confused about the order of operations here.

upvoted 0 times

...

Ernest

6 months ago

I practiced a similar question where we had to convert currencies, and I think we multiply the EUR amount by the exchange rate to get USD.

upvoted 0 times

...

Latrice

6 months ago

I think I remember that we need to convert EUR to USD first, but I'm not entirely sure how to do the calculations.

upvoted 0 times

...

Ming

7 months ago

Hmm, I'm not sure how to approach this. I think I need to do some currency conversions, but I'm not confident I'm doing it right.

upvoted 0 times

...

Yong

7 months ago

No problem, I've got this. I'll start by converting the EUR to USD, then I can round the final amount to the nearest dollar.

upvoted 0 times

...

Rolande

7 months ago

I'm a bit confused. Should I use the first exchange rate or the second one? I'm not sure which one to apply first.

upvoted 0 times

...

Karon

7 months ago

First, I'll convert the EUR to USD using the second exchange rate given. Then I'll round the final answer to the nearest dollar.

upvoted 0 times

...

Loreta

7 months ago

Okay, let's think this through step-by-step. We need to convert the EUR cost to USD.

upvoted 0 times

Sanda

8 days ago

First, we find the conversion rate. 1 EUR = 1.6200 USD.

upvoted 0 times

...

Andree

13 days ago

Right! We need to convert that to USD.

upvoted 0 times

...

Dolores

19 days ago

So, we start with 500,000 EUR.

upvoted 0 times

...