How much will it cost in Canadian dollars to purchase 2000 pesos in Mexican currency at a bank that charges a 3.5% commission on the transaction? Use an exchange rate of C$1.00 = Mexican peso 12.28. **(Do not round your intermediate calculations. Round your answer to two decimal places.)**

Cost           C$ 

To calculate the cost in Canadian dollars (C$) to purchase 2000 Mexican pesos at a bank that charges a 3.5% commission, we'll follow these steps:

1. **Determine the cost without commission:**

The exchange rate is given as C$1.00 = 12.28 Mexican pesos. So, to convert 2000 pesos to Canadian dollars:

\[
\text{Cost without commission} = \frac{2000 \text{ pesos}}{12.28} = 162.92 \text{ C$}
\]

2. **Calculate the commission:**

The bank charges a 3.5% commission. So, the commission is:

\[
\text{Commission} = 162.92 \times 0.035 = 5.70 \text{ C$}
\]

3. **Determine the total cost:**

Now, we add the commission to the initial cost:

\[
\text{Total cost} = 162.92 + 5.70 = 168.62 \text{ C$}
\]

Thus, the total cost to purchase 2000 pesos will be **C$168.62**.

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Would you like further details or clarifications?

Here are 5 related questions you might find useful:
1. How would the cost change if the commission were 5% instead of 3.5%?
2. What if you wanted to purchase 3000 pesos? How would that affect the total cost?
3. How does exchange rate fluctuation impact these transactions?
4. What steps should you follow if the bank provides a better exchange rate for larger amounts?
5. How can you calculate the reverse conversion (C$ to pesos) including commission?

**Tip:** Always confirm the exact exchange rate and commission fee from your bank before proceeding with currency conversions.

How much will it cost in Canadian dollars to purchase 2000 pesos in Mexican currency at a bank that charges a 3.5% commission on the transaction? Use an exchange rate of C$1.00 = Mexican peso 12.28. (Do not round your intermediate calculations. Round your answer to two decimal places.)

Find out how to calculate the cost in Canadian dollars to purchase 2000 Mexican pesos, including a 3.5% commission. Use the exchange rate of C$1.00 = 12.28 pesos and follow a detailed step-by-step solution. Perfect for students learning currency conversion and percentage calculations.

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