Question

rana is traveling to switzerland and needs to exchange her us dollars (usd) for swiss francs (chf). the current exchange rate is 1 usd = 0.90 chf, and the currency - exchange service charges a 1.5% transaction fee. how many us dollars does rana need to exchange to receive 270 chf after the fee is applied? 304.57 usd 274.11 usd 300 usd 243 usd

Explanation:

Step1: Let the amount of USD be $x$.

The amount of CHF received after the 1.5% transaction - fee is $x\times0.90\times(1 - 0.015)$.
We know that the amount of CHF received is 270. So we set up the equation $x\times0.90\times(1 - 0.015)=270$.

Step2: Simplify the left - hand side of the equation.

First, $1-0.015 = 0.985$. The equation becomes $x\times0.90\times0.985 = 270$. Then $x\times0.8865=270$.

Step3: Solve for $x$.

$x=\frac{270}{0.8865}\approx304.57$.

Answer:

304.57 USD