Question

Bouchard is travelling abroad in Ghana and using traveller's checks, which he has acquired from Easy Traveler's Savings Bank. Easy Traveler's Savings Bank charges a $7\%$ fee on traveller's checks, which can then be used like cash at any location overseas at the same exchange rate, and any change will then be returned to Bouchard in local currency. For this trip, Bouchard bought a $651$ Cedi traveller's check and paid a fee of $32.30$ USD(United States dollars) for the check. While in Ghana, Bouchard finds Leon's Pawnshop and Barter, which offers store credit for Bouchard's briefcase equal to its value in Cedis. If Bouchard's briefcase is worth $5,000$USD at the same exchange rate at which he bought his traveller's check, then how much store credit, to the closest Cedi, will Bouchard receive for the briefcase?

• A. $7,054$
• B. $2.3$
• C. $6.5$
• D. $8.9$

Answer 1

The correct option is A $7,054$

The $7\%$ fee is the same (relative to the exchange rate), whether it was applied to the Cedi or USD.

Therefore, $7\%$ of $651$ Cedi is equal to $32.30$ USD.

Translate English to math: $0.07\left(651\right)=32.30$ or $45.57$ Cedi $=32.30$ USD.

Next, you want the value of an item worth $5,000$ USD in Cedi,

So $\frac{45.57cedi}{32.30USD}=\frac{xcedi}{5000USD}$

$\Rightarrow 45.57\times 5000=32.30x$

$\Rightarrow x=\frac{227850}{32.30}=7054.18$

So, the closest cedi receive for briefcase $=7054$.