Question

maimo is planning a vacation to japan and needs to convert 400 gbp (pounds) to jpy (japanese yen). his bank charges a 2% fee for all currency conversions. if the exchange rate is 1 gbp = 130 jpy, how many japanese yen will he receive?
50,900 jpy
52,040 jpy
51,200 jpy
52,000 jpy

Explanation:

Step1: Calculate amount without fee

If 1 GBP = 130 JPY, for 400 GBP, the amount in JPY without fee is $400\times130 = 52000$ JPY.

Step2: Calculate fee amount

The bank charges a 2% fee. The fee amount is $52000\times 0.02=1040$ JPY.

Step3: Calculate received amount

The received amount of JPY is $52000 - 1040=50960$ JPY. But it seems there is a small calculation - error - related issue in the options. If we assume a wrong - way of calculation where we first consider the 2% deduction from GBP amount: The amount of GBP after 2% deduction is $400\times(1 - 0.02)=400\times0.98 = 392$ GBP. Then the amount in JPY is $392\times130 = 50960$ JPY which is closest to 50,900 JPY among the options.

Answer:

50,900 JPY