Question

Ariel purchased us$11,000 from a bank in America, which charged him a commission of 0.6%, and sold the US dollars to a bank in Canada, which charged him a 0.24% commission. How much money did he lose or gain? Assume that the exchange rate was c$1 = us$0.8915.

Answer 1

Ariel gained c$10,973.6 in the transaction.

Step-by-step explanation:

The amount of money Ariel purchased from the bank in America is $11,000. The bank charged Ariel a commission of 0.6% on this amount, which is equal to 0.006 * $11,000 = $66.

Now, Ariel sells the US dollars to a bank in Canada. Using the given exchange rate of c$1 = us$0.8915, we can calculate the amount of money in Canadian dollars that Ariel receives: $11,000 * c$1 = c$11,000.

The bank in Canada charges Ariel a commission of 0.24% on this amount, which is equal to 0.0024 * c$11,000 = c$26.4.

To determine how much money Ariel gained or lost in the transaction, we need to subtract the total commission charges from the amount of money in Canadian dollars Ariel received: c$11,000 - c$26.4 = c$10,973.6.

Therefore, Ariel gained c$10,973.6 in the transaction.