Question

Before leaving to visit Mexico, Levant traded 270 American dollars and received $3000 Mexican pesos. When he returned to America, he had 100 pesos left. How much money did he receive when he exchanges these pesos for dollars?

A) $9
B) $10
C) $90
D) $100

Answer 1

After determining the exchange rate from the initial transaction, Levant would receive approximately $9 for 100 Mexican pesos at the same rate, which corresponds to answer option A.

Step-by-step explanation:

The question asks how much money Levant would receive when he traded his remaining 100 Mexican pesos back into American dollars. Given the initial transaction, he traded 270 American dollars and received $3000 Mexican pesos, we can determine the exchange rate used. To calculate this, we use the amount of pesos received (3000) divided by the amount of dollars traded (270), which equals approximately 11.11 pesos per dollar. Therefore, for 100 pesos, Levant would receive approximately 9 dollars back (100 pesos / 11.11 pesos per dollar).

Using this information and considering that exchange rates may vary slightly when buying versus selling currency, as mentioned in the trading example with the Turkish Lira, the closest answer option to $9 is option A) $9.