Question

The exchange rate between the American dollar ($) and the British pound (£) was $1.60= £1.

(a) Denise changed £400 into dollars. How many dollars did she receive?
(b) To change the money, the bank charged a fixed amount of £3 plus 2% of the number of pounds changed. Calculate the amount the bank charged Denise to change her £400.

Answer 1

(a) Denise received $640.

(b) The total amount the bank charged Denise was £11

Explanation:

Proportions and Percentages

The exchange rate between the American Dollar ($) and the British Pound(£) is $1.60= £1.

(a) Denise changed £400 into dollars. Applying the exchange rate:

£400 = 1.60*400 = $640

Denise received $640.

(b) To change the money, we need to add both fees the bank charged Denise:

A fixed amount of £3

2% of £400 = £8

The total amount the bank charged Denise was £11