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Ratios, rates, proportional relationships, and units SAT question

Math · Problem-Solving and Data Analysis · Easy · Answer it here, explanation included.

Marta has 7,500 pesos she will convert to US dollars using a currency exchange service. At this time, the currency exchange rate is 1 peso = 0.075 US dollars. The exchange service will charge Marta a 2% fee on the converted US dollar amount. How many US dollars will Marta receive from the currency exchange after the 2% fee is applied?

ExplanationShow

Choice A is correct. At the exchange rate of 1 peso = 0.075 US dollars, 7,500 pesos would be converted to 7,500 × 0.075 = $562.50. However, since Maria pays a 2% fee on the converted US dollar amount, she receives only (100 – 2)%, or 98%, of the converted US dollars, and 562.50 × 0.98 = $551.25.

Choice B is incorrect. This is the number of US dollars Maria would receive if the exchange service did not charge a 2% fee. Choice C is incorrect and may result from a decimal point error made when calculating the conversion to US dollars and from not assessing the 2% fee. Choice D is incorrect and may result from reversing the units of the exchange rate.

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