Question

How much will it cost in Canadian dollars to purchase €2000 at a bank that charges a 2.2% commission on the transaction? Use an exchange rate of $1 Canadian equals €0.711142.

Answer 1

Answer:

$2,874.25 Canadian dollar

Step-by-step explanation:

The first thing to do here is to calculate the amount of the commission.

That would be 2.2% of €2,000

= 2.2/100 * €2,000 = €44

Now the total cost to pay = selling price + amount in commissions = €2,000 + €44 = €2,044

But we need our answer in the Canadian dollars

Mathematically;

$1 Canadian = €0.711142

$x Canadian = €2,044

x = (2,044 * 1)/0.711142

x = 2,874.25014975912

This is approximately $2,874.25 Canadian dollar