A bank in Toronto charges 1.75% commission to buy and sell currencies. Assume that

the current exchange rate is US$1 = C$1.3071.

a. How many Canadian dollars will you have to pay to purchase US$1,495?

Round to the nearest cent

b. How much commission in Canadian dollars (C$) will you pay the bank for the above transaction?

Round to the nearest cent Use python

a. To purchase US$1,495, you will need to pay **C$1,954.11**.

b. The commission you will pay the bank for this transaction is **C$34.20**.

Would you like more details or have any questions?

Here are some related questions:

1. How would the commission change if the amount of USD purchased increased?
2. What would be the total cost in Canadian dollars including the commission?
3. How does the commission rate affect currency transactions in general?
4. How do you calculate the total amount to be paid when commission is included?
5. What if the exchange rate changes—how would that impact the commission?
6. Are there any banks that offer better rates or lower commissions?
7. What strategies can be used to minimize commission fees in currency exchange?
8. How would the calculation change if the commission was a flat fee instead of a percentage?

**Tip:** Always ensure to include the commission when calculating the total cost of a currency exchange to avoid surprises.

Calculate the cost of purchasing US$1,495 in Canadian dollars, including a 1.75% commission fee charged by a bank in Toronto. Learn how to compute the exchange rate and commission amount, rounded to the nearest cent.

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