Question 1038116: Anna is a student who frequently uses her American debit card to make purchases when traveling abroad. When she makes a purchase, the bank converts the purchase price at a daily foreign exchange rate and than charges a 3% fee on the converted price.
Anna also converts cash from one currency to another at her bank. To convert cash into a different currency, her bank uses the daily foreign exchange rates and charges a 2.5% fee on the converted cost.
Before her trip, Anna asked her bank to convert $100 U.S dollars into Mexican pesos. Anna did not spend any of these pesos during her trip, and she asked her bank to convert them back into US dollars when she returned. If the daily foreign exchange rate stayed the same, how many US dollars did Anna lose after these two conversions?
Answer by jorel555(1290)   (Show Source):
You can put this solution on YOUR website! Assuming she made one conversion after another, she first gets 97% of her money back from the first bank, then gets 97.5% of that amount from the second bank. So, in total, she gets:
100*.975*.97=$94.58
100-94.58=$5.42 lost after the two conversions!!!!!!!!
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