Asked by Nicole Salazar on Jul 18, 2024
Verified
The current exchange rates show that US$1.00 = €0.7700. If you have $450 US dollars to exchange and the currency exchange charges 2.5% on all transactions, how many euros will you be able to buy?
A) €346.50
B) €337.84
C) €584.42
D) €569.81
E) €450
Exchange Rates
The value of one currency expressed in terms of another currency.
Transaction
An instance of buying or selling something; a business deal or action.
- Achieve proficiency in and apply the knowledge of currency exchange and the dynamics of conversion rates.
Verified Answer
CA
Chattharida ArmentroutJul 19, 2024
Final Answer :
B
Explanation :
First, calculate the total amount in euros without the transaction fee: $450 * €0.7700 = €346.50. Then, subtract the 2.5% fee: €346.50 * 0.975 (100% - 2.5% = 97.5%) = €337.8375, which rounds to €337.84.
Learning Objectives
- Achieve proficiency in and apply the knowledge of currency exchange and the dynamics of conversion rates.