Question

if the exchange rate is 1 usd = 0.85 eur, what is the net amount of euros received after converting 200 usd with a 3% transaction fee? select the correct amount. 165.30 eur 164.90 eur 165.50 eur 165.80 eur

Explanation:

Step1: Calculate amount in euros without fee

The amount in euros without fee for 200 USD at an exchange - rate of 1 USD = 0.85 EUR is $200\times0.85 = 170$ EUR.

Step2: Calculate transaction fee amount

The transaction fee is 3% of 170 EUR. So the fee amount is $0.03\times170=5.1$ EUR.

Step3: Calculate net amount in euros

Subtract the transaction - fee from the amount in euros without fee. The net amount is $170 - 5.1=164.9$ EUR.

Answer:

164.90 EUR