Horace is seeking to exchange money in preparation for his trip to Uruguay. He will need 5,000 Uruguayan pesos, and the exchange rate between the US dollar and the Uruguayan peso is 1:19.924. The currency exchange agent Horace is using requires that a 5% fee be paid once the currency conversion has occured. Taking the fee into account, how many US dollars will it take Horace to get 5,000 pesos? Round to the nearest cent.
At 19.924 pesos per US dollar, the amount needed before the fee is 5,000 ÷ 19.924 ≈ $250.95. The 5% fee adds about $12.55, so the total is $250.95 × 1.05 ≈ $263.50. The best answer is $263.50.
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