Question

if the exchange rate is 1 usd = 0.85 eur, how many us dollars are needed to obtain 200 eur with a 3% transaction fee? select the correct amount. 85 usd 235 usd 243 usd 285 usd

Explanation:

Step1: Calculate amount without fee

First, find out how many USD are needed without the fee. Given 1 USD = 0.85 EUR, to get 200 EUR, the amount of USD without fee is $x=\frac{200}{0.85}\approx235.29$ USD.

Step2: Calculate amount with 3% fee

The transaction fee is 3% of the amount without fee. So the total amount of USD needed $y = x(1 + 0.03)$. Substitute $x=\frac{200}{0.85}$ into the formula: $y=\frac{200}{0.85}\times1.03=\frac{200\times1.03}{0.85}=\frac{206}{0.85}\approx242.35\approx243$ USD.

Answer:

243 USD