1. **State the problem:** Compare the price of the watch in Geneva (in CHF) and Manchester (in £) to find out which city has the cheaper watch and by how much in pounds. 2. **Given:** - Price in Geneva = 193.75 CHF - Price in Manchester = 145 £ - Exchange rate £1 = 1.55 CHF 3. **Convert Geneva price to pounds:** $$\text{Price in £} = \frac{193.75}{1.55}$$ Calculate: $$\frac{193.75}{1.55} = 125$$ So, the watch costs £125 in Geneva. 4. **Compare prices:** - Geneva: £125 - Manchester: £145 5. **Find which city is cheaper:** Since £125 < £145, the watch is cheaper in Geneva. 6. **Calculate difference in price:** $$145 - 125 = 20$$ **Final answer:** The watch is cheaper in Geneva by £20.