Question

hudson needs to receive 320 aud (australian dollars) after the fee is applied, so he is planning to exchange his euros (eur) for australian dollars. the current exchange rate is 1 eur = 1.00 aud, and the currency - exchange service charges a 1% transaction fee. how many euros does hudson need to exchange to receive 320 aud after the fee is applied?
512 eur
202 eur
323.23 eur
200 eur

Explanation:

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

The exchange - rate is 1 EUR = 1.00 AUD. But after a 1% transaction fee, the amount of AUD received from $x$ euros is $x(1 - 0.01)$ (since 1% = 0.01).
We know that the amount of AUD received is 320. So we set up the equation $x(1 - 0.01)=320$.

Step2: Solve the equation for $x$.

We have $0.99x = 320$. Then $x=\frac{320}{0.99}\approx323.23$.

Answer:

323.23 EUR