You can buy euros at a currency exchange store or at the airport. If you want to buy €250, would it be better to pay a 1% transaction fee or a flat service charge of $10.00? Use C$1.00 = €0.7448 as the exchange rate.

Question

Quizplus · Accepted Answer

To determine which option is better, first calculate the cost in Canadian dollars (C$) for €250 using the exchange rate C$1.00 = €0.7448. This gives C$335.54 (€250 / €0.7448). A 1% transaction fee on C$335.54 is C$3.36 (1% of C$335.54). The flat service charge is C$10.00. Therefore, the 1% transaction fee is cheaper by C$6.64 (C$10.00 - C$3.36) than the flat service charge.

You Can Buy Euros at a Currency Exchange Store or at the Airport