Question

the exchange rate between non-fixed currencies continuously fluctuates. the following table shows the exchange rate of pounds sterling to the israeli new shekel (plural shekalim) over a period of six days.

\

$$\begin{tabular}{|c|c|} \\hline day & \\pounds:ins \\\\ \\hline monday & 1:6.0333 \\\\ \\hline tuesday & 1:5.8594 \\\\ \\hline wednesday & 1:5.7012 \\\\ \\hline thursday & 1:5.9462 \\\\ \\hline friday & 1:6.1715 \\\\ \\hline saturday & 1:6.0896 \\\\ \\hline \\end{tabular}$$

nate has \pounds 88.65 to convert into shekalim. the currency exchange he is using charges an 8\\% fee after the currency conversion has occurred. about how many more shekalim will nate receive if he makes his trade on the day with the most favorable exchange rate than if he makes his trade on the day with the least favorable exchange rate?
a. ins 41.69
b. ins 38.35
c. ins 31.68
d. ins 6.67

Explanation:

Identify the exchange rates from the table

Using the Table Reading knowledge point

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Determine the most and least favorable rates

Using the Currency Conversion knowledge point

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Calculate the converted amounts before fees

Using the Currency Conversion knowledge point

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Apply the 8% transaction fee

Using the Currency Conversion knowledge point

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Calculate the difference between the two outcomes

Using the Currency Conversion knowledge point

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Answer:

• a. INS 41.69
• b. INS 38.35 (Correct answer)
• c. INS 31.68
• d. INS 6.67