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(d) Jeremy is in Japan and decides to buy a jacket for *50 000 using a credit card.The cashier offers him 2 options to pay for the jacket;o Option A: pay in Singapore dollars ($) $468.16 oro Option B: pay in Japanese yen (s) *50 000.When paying in Japanese yen, the credit card company will convert the amount toSingapore dollars and there is a currency conversion fee of 1.5%.The exchange rate between Singapore dollars and Japanese yen is$1 = +108.Which option should Jeremy choose? Show your working clearly.

Question

(d) Jeremy is in Japan and decides to buy a jacket for *50 000 using a credit card.The cashier offers him 2 options to pay for the jacket;o Option A: pay in Singapore dollars ()) 468.16 oro Option B: pay in Japanese yen (s) *50 000.When paying in Japanese yen, the credit card company will convert the amount toSingapore dollars and there is a currency conversion fee of 1.5%.The exchange rate between Singapore dollars and Japanese yen is$1 = +108.Which option should Jeremy choose? Show your working clearly.

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Solution

Para determinar cuál opción es mejor para Jeremy, debemos calcular el costo total en dólares de Singapur (SGD) para ambas opciones y compararlas.

Opción A: Pagar en dólares de Singapur (SGD)

  • El costo es directamente $468.16 SGD.

Opción B: Pagar en yenes japoneses (JPY)

  1. Primero, convertimos los 50,000 JPY a SGD usando la tasa de cambio. Cantidad en SGD=50,000 JPY108 JPY/SGD=462.96 SGD \text{Cantidad en SGD} = \frac{50,000 \text{ JPY}}{108 \text{ JPY/SGD}} = 462.96 \text{ SGD}
  2. Luego, aplicamos la tarifa de conversión de 1.5%. Tarifa de conversioˊn=462.96 SGD×0.015=6.9444 SGD \text{Tarifa de conversión} = 462.96 \text{ SGD} \times 0.015 = 6.9444 \text{ SGD}
  3. Sumamos la tarifa de conversión al monto convertido. Costo total en SGD=462.96 SGD+6.9444 SGD=469.9044 SGD \text{Costo total en SGD} = 462.96 \text{ SGD} + 6.9444 \text{ SGD} = 469.9044 \text{ SGD}

Comparación de opciones:

  • Opción A: $468.16 SGD
  • Opción B: $469.9044 SGD

Jeremy debería elegir la Opción A ya que 468.16SGDesmenorque468.16 SGD es menor que 469.9044 SGD.

This problem has been solved

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