A bank charges 2 1/2% commission for issuing a bank draft. If a customer obtained a bank draft for #84,000 from the bank, calculate the total cost of the bank draft
1.025 * 84,000 = ?
86,100
Yes.
86,100
To calculate the total cost of the bank draft, we need to determine the commission charged by the bank.
First, let's convert 2 1/2% to decimal form.
2 1/2% can be written as 2.5% or 0.025 in decimal form.
Next, we calculate the commission amount.
Commission = 0.025 * 84,000
= 2,100
Therefore, the commission charged by the bank for issuing the bank draft is #2,100.
To calculate the total cost of the bank draft, we add the commission to the initial amount requested by the customer.
Total cost = 84,000 + 2,100
= #86,100
So, the total cost of the bank draft is #86,100.