Question

Horace is seeking to exchange money in preparation for his trip to Uruguay. He will need 5,000 Uruguayan pesos, and the exchange rate between the US dollar and the Uruguayan peso is 1:19.924. The currency exchange agent Horace is using requires that a 5% fee be paid once the currency conversion has occured. Taking the fee into account, how many US dollars will it take Horace to get 5,000 pesos? Round to the nearest cent.
a.
$274.62
b.
$238.41
c.
$250.95
d.
$263.50



Please select the best answer from the choices provided


A
B
C
D

Answer 1

First find dollars needed without the fee: 5000 / 19.924 ≈ 250.95 USD.
Include the 5% fee: 250.95 × 1.05 = 263.4975 ≈ $263.50.

Answer: D