Asked by Danielle Augustus on Jul 06, 2024
Verified
The current exchange rates show that C$1.00 = US$0.9672. If you have $500 Canadian dollars to exchange and the currency exchange store charges 2% on all transactions, how many US dollars will you be able to buy?
A) US$506.62
B) US$425.85
C) US$473.93
D) US$483.60
E) US$586.82
Exchange Rates
The value of one currency for the purpose of conversion to another.
Currency Exchange
The process of converting one currency into another, commonly associated with international trade and travel.
Transactions
The act of conducting business, especially buying or selling goods, services, or assets.
- Utilize calculations of exchange rates to estimate the cost of goods in different monetary units.
- Understand the impact of currency strengthening or weakening on international transactions.
Verified Answer
SK
Samantha K. GreerJul 12, 2024
Final Answer :
C
Explanation :
First, convert C$500 to US dollars at the given rate: 500 * 0.9672 = US$483.60. Then, subtract the 2% transaction fee: 483.60 * 0.02 = US$9.672. Finally, subtract the fee from the total: 483.60 - 9.672 = US$473.93.
Learning Objectives
- Utilize calculations of exchange rates to estimate the cost of goods in different monetary units.
- Understand the impact of currency strengthening or weakening on international transactions.