Question

An international bank issues its Traveler credit cards worldwide. When a customer makes a purchase using a Traveler

card in a currency different from the customer's home currency, the bank converts the purchase price at the daily foreign
exchange rate and then charges a 4% fee on the converted cost.
Sara lives in the United States, but is on vacation in India. She used her Traveler card for a purchase that cost 602
rupees (Indian currency). The bank posted a charge of $9.88 to her account that included the 4% fee.
What foreign exchange rate, in Indian rupees per one U.S. dollar, did the bank use for Sara's charge? Round your answer
to the nearest whole number.

Answer 1

Correct option is: A--63

Cost of the item =602 INR

Conversion fee =4%

Total bank charges =9.88 USD

The bank charges includes conversion rate and 4% conversion fee.

Let the conversion rate (in USD) be x.

∴9.88=x+0.04x

∴x=

1.04

9.88

​

=9.5 USD

The cost paid by the customer is INR 602 and its value in USD is 9.5.

Hence, the conversion rate is =

9.5

602

​

=63.36

Therefore, we can say that 1 USD =63 INR

Step-by-step explanation: