A bank in Toronto charges 3.25% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.3533. a. How many Canadian dollars will you have to pay to purchase US$1,405?   Round to the nearest cent b. How much commission in Canadian dollars (C$) will you pay the bank for the above transaction?

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter7: International Arbitrage And Interest Rate Parity
Section: Chapter Questions
Problem 33QA
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A bank in Toronto charges 3.25% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.3533.
a. How many Canadian dollars will you have to pay to purchase US$1,405?
 
Round to the nearest cent
b. How much commission in Canadian dollars (C$) will you pay the bank for the above transaction?
 
2.
Skis are listed by a manufacturer for $850, less trade discounts of 30% and 18%. What further rate of discount should be given to bring the net price to $443?
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