Question

Rapheal is enrolled as a foreign-exchange student. He is from Canada and is going to attend school in Texas. On average he can spend $82 USD each month for the 5 months he is visiting. If his mother sent him $500 CAD when he first arrived, what was the exchange rate of USD to CAD.

Answer 1

1.2195

Explanation:

For each month, he is given (on avg) $100 (CAD).

If on avg he can spend $82 (USD) each month,

then the USD: CAD ratio is

100:82, meaning $1 (USD) is equivalent to $.82(CAD)

and the exchange rate is calculated by equating 1 = .82x

thus, x= 1/.82 = 1.2195