Cannot summarise this

Question

Sorry for posting another one of these I can't seem to comment to the person who responded but the question I need help working out in is:

 

Smiling Mark’s Alfa Romeo dealership purchased one of its most popular sports car models for 37,500 Euros. The FX rate for the Euro was .65 Euros per dollar at the time of purchase, but then rose to .72 Euros by the time payment was made. What was Smiling Mark’s gain or loss on the change in rates?

 

So I've worked out

37500 / 0.65 = 57692.307 which i rounded to 57692.31

37500 / 0.75 = 50000

From here on I'm really unsure what I should do or how I should do the next step, this is somewhat new to me so I'd appretiate if someone could post step by step on how I should work out the rates, thanks and sorry for reposting.

Answer 1

You're on the right track.  First of all, your second line should be dividing by .72, not .75, since you said .72 in the original problem.  Once you get that number, subtract the smaller number from the larger one.  This is the overall loss because of the exchange rate change (you know it is a loss because the U.S. dollar amount went from a higher value to a lower one)