A bank in London, Ontario charges 1.75% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.3973. a. How many Canadian dollars will you receive from the bank if you sell US$1,310? Round to the nearest cent b. How much commission will you pay the bank for this transaction?
A bank in London, Ontario charges 1.75% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.3973. a. How many Canadian dollars will you receive from the bank if you sell US$1,310? Round to the nearest cent b. How much commission will you pay the bank for this transaction?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![A bank in London, Ontario charges 1.75% commission to buy and sell currencies.
Assume that the current exchange rate is US$1 = C$1.3973.
a. How many Canadian dollars will you receive from the bank if you sell US$1,310?
Round to the nearest cent
b. How much commission will you pay the bank for this transaction?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28163d2c-1b78-4962-9ace-f366cfc93545%2F8cb390dc-491d-4990-bdde-58bdc608bb1a%2Fho2gco_processed.png&w=3840&q=75)
Transcribed Image Text:A bank in London, Ontario charges 1.75% commission to buy and sell currencies.
Assume that the current exchange rate is US$1 = C$1.3973.
a. How many Canadian dollars will you receive from the bank if you sell US$1,310?
Round to the nearest cent
b. How much commission will you pay the bank for this transaction?
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