4
QuizMultiple Choice

Converting Currency

Question 4 • FowU - Financial Math - B

The exchange rate between non-fixed currencies continually fluctuates. The chart below shows the exchange rate of the US dollar to the Japanese yen over the course of six days.Day$:¥Monday1:88.6122Tuesday1:90.8305Wednesday1:87.5507Thursday1:91.2323Friday1:92.7120Saturday1:89.4477Mary has $311.75 to convert into yen. The currency exchange she is using charges a surcharge of 6% when converting currency. About how many more yen will Mary receive if she makes her trade on the day with the most favorable exchange rate than if she makes her trade on the day with the least favorable exchange rate?

Answer
A
¥1,125
B
¥1,513
C
¥1,609
D
¥1,706

Explanation

Friday has the most favorable rate, ¥92.7120 per dollar, and Wednesday has the least favorable rate, ¥87.5507 per dollar. The difference is 92.7120 − 87.5507 = ¥5.1613 per dollar. After the 6% surcharge, Mary exchanges 94% of $311.75, so the difference is about 5.1613 × 311.75 × 0.94 = ¥1,512.49, or about ¥1,513. The correct choice is ¥1,513.

AI-written and checked against the verified answer.

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