ACT Math · Ratios, rates, and percents

$200 is converted to euros at a rate of 1 USD = 0.92 EUR. A 5% fee is then charged on the converted amount. How many euros remain after…

$200 is converted to euros at a rate of 1 USD = 0.92 EUR. A 5% fee is then charged on the converted amount. How many euros remain after the fee?

Answer and explanation

Answer: F: 174.80

First convert: 200(0.92)=184200(0.92)=184 euros. The fee is 5%5\% of the converted amount: 184(0.05)=9.20184(0.05)=9.20 euros. What remains is 184−9.20=174.80184-9.20=174.80 euros, choice F. Equivalently, 184(0.95)=174.80184(0.95)=174.80. Choice G (184184) is the amount before the fee. Choice J (193.60193.60) adds the fee instead of subtracting it, 184(1.05)184(1.05). Choice H (190190) does not follow from any step. The fee is charged on the converted amount in euros, so it is applied after the conversion. The order of conversion and fee matters little here.

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