1. The problem is to convert £39.60 to dollars using the exchange rate $1 = £0.55. 2. The formula to convert pounds to dollars is: $$\text{dollars} = \frac{\text{pounds}}{\text{exchange rate}}$$ 3. Substitute the given values: $$\text{dollars} = \frac{39.60}{0.55}$$ 4. Simplify the fraction by dividing numerator and denominator: $$\text{dollars} = \frac{\cancel{39.60}}{\cancel{0.55}} = 72$$ 5. Therefore, £39.60 is equivalent to $72. This means if you exchange £39.60 at the rate of $1 = £0.55, you will get 72 dollars.