How much would you pay for a 16-gigabyte iPhone that costs $299 U.S. dollars in Canadian dollars if 1 U.S. dollar equals $1.01018 Canadian dollar?

To determine how much a 16-gigabyte iPhone costing $299 U.S. dollars would be in Canadian dollars, you need to multiply the cost in U.S. dollars by the exchange rate.

In this scenario, the cost of the iPhone is $299 USD, and the exchange rate is 1 USD to 1.01018 CAD. Thus, the calculation would be:

299 USD × 1.01018 CAD/USD = 302.05 CAD.

This calculation shows that to convert the amount in U.S. dollars to Canadian dollars accurately, multiplying the price in USD by the exchange rate offers the correct conversion. Therefore, $302.05 CAD is the equivalent cost for the iPhone when using the provided exchange rate.