3
QuizMultiple Choice

Exchanging Currencies Money Markets — Quiz

Question 3 • Financial Math

Nevaeh is visiting the United States from Canada and wants to convert 300 CAD (Canadian dollars) to USD (US dollars). Her bank applies a 1.5% fee on all currency conversions. If the exchange rate is 1 CAD = 0.77 USD, how many US dollars will she receive?

Answer
A
300 point 0 0 USD
B
224 point 2 5 USD
C
227 point 5 4 USD
D
295 point 5 USD

Explanation

First convert the Canadian dollars at the exchange rate: 300 × 0.77 = 231 USD. The 1.5% fee is 231 × 0.015 = 3.465 USD, so Nevaeh receives 231 − 3.465 = 227.535 USD, or 227.54 USD when rounded to the nearest cent. The correct choice is 227.54 USD.

AI-written and checked against the verified answer.

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