please help

Question

Jo-ann's mother sent her $50,000 as a graduation gift, and she wanted to conver the $ into canadian dollars, if the bank was charging .90% commission. caluclate how many canadian dollars, she would recieve, assume the exchange rate was C$=$92.2677

Answer 1

This problem has two parts.

 

First, you need to determine what 0.9% of $50,000 dollars is and subtract this from the original amount. In order to determine what 0.9% of $50,000 is you need to convert 0.9% into a decimal. Simply move the decimal two places to the left and drop the percent sign. (0.9% = 0.009). Now, multiply $50,000 by 0.009. This gives you the amount the bank charges in commission. Subtract this amount from the original $50,000 to determine how much is left over once the bank gets their share.

 

$50,000 - ($50,000 * 0.009) = money left over after bank's share ($M)

 

Second, you need to take the conversion factor (C$ = $92.2677) and turn it into a ratio and then multiply it by the money left over after the bank took their share. Since you are going from US dollars to Canadian dollars, you want your US dollars to cancel so that your answer is left in C$. This means that the conversion factor ratio must be oriented such that the the US dollars are in the denominator so that they cancel when multiplied by the US dollars given as a gift, after the bank's share has been removed.

 

conversion factor ratio: C$/$92.2677 (US dollars are in the denominator)

 

$M * conversion factor ratio == $M * (C$/$92.2677) == C$

 

Since the $M is in the numerator and is being multiplied, it can cancel with whatever is in the denominator. In this case, the units ($) cancel and you are left with C$.

 

To see it in one step, combine the two equations. Be careful to follow the rules for Order of Operations so as not to make any silly mistakes:

 

 

[$50,000 - ($50,000 * 0.009)] * (1C$/$92.2677) ==