Marta has 7,500 pesos she will convert to US dollars using a currency exchange service. At this time, the currency exchange rate is 1 peso = 0.075 US dollars. The exchange service will charge Marta a 2% fee on the converted US dollar amount. How many US dollars will Marta receive from the currency exchange after the 2% fee is applied?
Correct answer: A
Explanation
Choice A is correct. At the exchange rate of 1 peso = 0.075 US dollars, 7,500 pesos would be converted to 7,500 × 0.075 = $562.50. However, since Maria pays a 2% fee on the converted US dollar amount, she receives only (100 – 2)%, or 98%, of the converted US dollars, and 562.50 × 0.98 = $551.25.
Choice B is incorrect. This is the number of US dollars Maria would receive if the exchange service did not charge a 2% fee. Choice C is incorrect and may result from a decimal point error made when calculating the conversion to US dollars and from not assessing the 2% fee. Choice D is incorrect and may result from reversing the units of the exchange rate.
Loading…
Searched on YouTube by topic, not by question text. Open this search on YouTube →
SAT® and PSAT/NMSQT® are trademarks registered by the College Board, which is not affiliated with, does not sponsor, and does not endorse this project.