Mitchell travels from the US to Canada, where he exchanges 150 US dollars for Canadian dollars. He then spends 20 Canadian dollars, returns to the US, and exchanges the remaining money back to US dollars. How many US dollars does Mitchell have remaining?
A. 129.46
B. 130.00
C. 130.62
D. 134.59
Answer (1)
Mitchell converts 150 USD to CAD: 150 USD × 1.03017 = 154.5255 CAD .
Mitchell spends 20 CAD, leaving him with 154.5255 − 20 = 134.5255 CAD .
Mitchell converts the remaining CAD back to USD: 134.5255 CAD × 0.97071 = 130.585248105 USD .
Mitchell has approximately 130.59 USD remaining.
Explanation
Initial Exchange to Canadian Dollars Mitchell starts with 150 US dollars and exchanges them for Canadian dollars. The exchange rate is 1 USD = 1.03017 Canadian dollars. We need to find out how many Canadian dollars Mitchell gets.
Calculating Canadian Dollars To find the amount of Canadian dollars Mitchell receives, we multiply the amount of US dollars by the exchange rate: 150 USD × 1.03017 USD CAD = 154.5255 CAD So, Mitchell gets 154.5255 Canadian dollars.
Spending Canadian Dollars Mitchell spends 20 Canadian dollars. To find the remaining amount, we subtract 20 CAD from the initial amount in Canadian dollars: 154.5255 CAD − 20 CAD = 134.5255 CAD Mitchell now has 134.5255 Canadian dollars.
Converting Back to US Dollars Mitchell exchanges the remaining Canadian dollars back to US dollars. The exchange rate is 1 CAD = 0.97071 USD. To find out how many US dollars Mitchell gets, we multiply the amount of Canadian dollars by the exchange rate: 134.5255 CAD × 0.97071 CAD USD = 130.585248105 USD Rounding to two decimal places, Mitchell has 130.59 US dollars remaining.
Final Answer Therefore, Mitchell has approximately 130.59 US dollars remaining.
Examples
Understanding currency exchange is crucial for international travel and trade. For example, if you're planning a trip from the US to Europe, you'll need to convert US dollars to Euros. Knowing the exchange rate helps you budget effectively and understand the true cost of goods and services in another country. Similarly, businesses engaged in international trade need to monitor exchange rates to accurately price their products and manage their profits. This problem demonstrates a simplified version of these real-world scenarios.
