Brian wants to exchange South-African rand for British pound. if he must pay an agent commission of 1.5%?

Question

UpStudy AI · Accepted Answer

Assume Brian wants to exchange an amount of $$ R $$ South-African rand. The agent’s commission is $$ 1.5\% $$ of the exchanged amount, so we first calculate the commission fee as

$$
\text{Commission} = 0.015 \, R.
$$

After paying the commission, the net amount remaining for exchange is

$$
R - 0.015 \, R = 0.985 \, R.
$$

If the exchange rate is given as $$ E $$ British pounds per South-African rand, then the amount in pounds that Brian receives is

$$
0.985 \, R \times E.
$$

Thus, after the commission, Brian ends up with $$ 0.985 \, R $$ rand to be converted at the rate $$ E $$, yielding

$$
\text{Pounds received} = 0.985 \, R \, E.
$$
After paying a 1.5% commission, Brian receives 98.5% of his South-African rand, which converts to British pounds at the given exchange rate.

Brian wants to exchange South-African rand for British pound. if he must pay an agent commission of 1.5%?

Upstudy AI Solution

Answer

Solution

Bonus Knowledge

Related Questions

Latest Economics Questions