# [MOVED] finance: exchange rates, simple-interest investments

#### kathy's

##### New member
I was wondering if you could possibly check my work. Thanks!

1) Bella has decided to take 10 000 Krones on her trip to Denmark. The exchange rate is $1 CDN (one dollar, Canadian) for 4.3309 Krones. The exchange agency had$5 service charge for making the exchange. How much did Bella pay in Canadian dollars?

I got: $235.90. Is this right??? 2) Hal invested$2500 at 4 ¾% simple interest. Determine the accumulated amount when he withdrew the investment at the end of 5 years.

First off, what is 4 ¾% percentage wise? I don't know were to start. Thank you.

#### stapel

##### Super Moderator
Staff member
1) How many times does 4.3309 fit into 10 000? (Hint: Divide.) This gives you the number of Canadian dollars required. Now add the exchange fee.

Note: Since C$235.90 × (4.3309 Kr / C$1) = 1021.66 Kr, it is unlikely that your solution is correct.

2) Four and three-quarter percent, "percentage-wise", is four and three-quarter percent. That is to say, the interest rate is already given as a percentage. Now apply the simple-interest formula you've memorized, with P = 2500 and t = 5, to find the value of the interest I. Then add this to the principle P to get the total value.

Eliz.

#### kathy's

##### New member
so for the second I got the answer: 3000.00 is that right???

Staff member
OK :?: :?: