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Lady bird [3.3K]
3 years ago
6

A bank gives two dollars in eastern caribbean currency for one united states dollar. Given 1% tax is charged on all foreign exch

ange transactions, calculate the amount in ec currency which a tourist receives in exchange for us 1200
Mathematics
1 answer:
horsena [70]3 years ago
3 0

Answer:

A tourist receives 2376 ec currency in exchange for us 1200.

Step-by-step explanation:

This can be calculated as follows:

Tax rate = 1%

Amount of us currency = 1200

Total amount of ec currency = Amount of us currency * 2 = 1200 * 2 = 2400

Amount of tax = Total amount of ec currency * Tax rate = 2400 * 1% = 24

Net amount of ec currency = Total amount of ec currency - Amount of tax = 2400 - 24 = 2376

Net amount ec currency obtained above is the amount of ec currency which a tourist receives in exchange for us 1200.

Therefore, a tourist receives 2376 ec currency in exchange for us 1200.

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