Exchange Rates - SAT

This video is for the redesigned SAT which is for you if you are taking the SAT in March 2016 and beyond.

Exchange Rates
Example:
An international bank issues its Traveler credit cards worldwide. When a customer makes a purchase using a Traveler card in a currency different from the customer’s home currency, the bank converts the purchase price at the daily foreign exchange rate and then charges a 4% fee on the converted cost.
Sara lives in the United States, but is on vacation in India. She used her Traveler card for a purchase that cost 602 rupees (Indian currency). The bank posted a charge of $9.88 to her account that included the 4% fee.

Part 1:
What foreign exchange in Indian rupees per one U.S. dollar, did the bank use for us for Sara’s charge? Round your answer to the nearest whole number?

Part 2:
A bank in India sells a prepaid credit card worth 7,500 rupees. Sara can buy the prepaid card using dollars at the daily exchange rate with no fee, but she will lose any money left unspent on the prepaid card. What is the least number of the 7,500 rupees on the prepaid card Sara must spend for the prepaid card to be cheaper than charging all her purchases on the Traveler card? Round your answer to the nearest whole number of rupees.

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