Withdrawing money from a US bank requires a service charge of US$1.00 for the American bank and an extra C$2.00 from your Canadian bank. If the exchange rate for US$1.00 is C$0.97, what is the total amount deducted from your account in Canadian dollars if you withdraw US$80.00 from an American bank?

Question

$81.78

$79.12

$80.57

$80.35

Answer 1

First, we need to calculate the service charge in Canadian dollars. Since the exchange rate is US$1.00 = C$0.97, the service charge from the American bank (US$1.00) is equivalent to C$1.00 x 0.97 = C$0.97.
Next, we need to calculate the total service charge from the Canadian bank. Since the exchange rate is US$1.00 = C$0.97, the total service charge from the Canadian bank (C$2.00) is equivalent to C$2.00.
To calculate the total amount deducted from your account in Canadian dollars, we need to add the amount withdrawn (US$80.00) to the service charges (C$0.97 + C$2.00).
Total amount deducted = US$80.00 + C$0.97 + C$2.00 = US$80.00 + C$2.97 = C$81.97.
Therefore, the total amount deducted from your account in Canadian dollars is $81.97. Answer: $81.78.