Question

The exchange rate between non-fixed currencies continuously fluctuates. The following table shows the exchange rate of pounds sterling to Israeli new shekel (plural shekalim) over a period of six days.
Days / £:INS
Monday: 1:6.0333
Tuesday: 1:5.8594
Wednesday: 1:5.7012
Thursday: 1:5.9462
Friday: 1:6.1715
Saturday: 1:6.0896

nate had 88.65 to convert into shekalim. the currency exchange he is using charges an 8% surcharge when converting currency. about how many more shekalim will nate recieve if he makes his trade on the day with the most favorable exchange rate than if he makes his trade on yhe day with the least favorable exchange rate?

Possible Answers
A. INS 41.69
B. INS 38.35
C. INS 31.68
D. INS 6.67

Answer 1

The correct answer is:

B) INS 38.35

Explanation:

The day with the best exchange rate is Friday; the rate is 1:6.1715. Converting 88.65£ with this rate, we have:

88.65(6.1715) = 547.103475.

Since he is charged an 8% surcharge, he gets to keep 100%-8% = 92% = 92/100 = 0.92 of this:

0.92(547.103475) = 503.335197

The day with the worst exchange rate is Wednesday, with a rate of 1:5.7012. Converting 88.65£ at this rate,

88.65(5.7012) = 505.41138. 4

0.92(505.41138) = 464.9784696

The difference between Friday and Wednesday is:

503.335197-464.9784696 = 38.3567274, or 38.35.

Answer 2

The answer to this question is B: INS 38.35