Question

What is the total amount in Naira that Musa will pay the bank if the commission charged by the bank is 34Naira on each bank draft and he buys a bank draft of (a) $427 (b) £335 (take the exchange rate to be $1=2Naira, £1=15Naira)

Answer 1

a) Musa will pay the bank a total of ₦49,106 (42,700 + 6,406) if he buys a bank draft of $427. The conversion rate is $1 = ₦2 and the charges amount to 34 × 427 = 14,358, so the total amount to be paid is 42,700 + 14,358 = 56,058. Subtracting the commission, the total amount is 56,058 - 6,406 = 49,102.

b) Musa will pay the bank a total of ₦68,030 (50,500 + 17,530) if he buys a bank draft of £335. The conversion rate is £1 = ₦15 and the charges amount to 34 × 335 = 11,290, so the total amount to be paid is 50,500 + 11,290 = 61,790. Subtracting the commission, the total amount is 61,790 - 17,530 = 68,030.

Answer 2

(a) Musa wants to buy a bank draft for $427. Since $1 = 2 Naira, the cost of the bank draft in Naira will be:

$427 x 2 Naira/$1 = 854 Naira

The commission charged by the bank is 34 Naira on each bank draft, so the total amount in Naira that Musa will pay the bank will be:

854 Naira + 34 Naira = 888 Naira

Therefore, Musa will pay the bank a total of 888 Naira for the bank draft.

(b) Musa wants to buy a bank draft for £335. Since £1 = 15 Naira, the cost of the bank draft in Naira will be:

£335 x 15 Naira/£1 = 5,025 Naira

The commission charged by the bank is 34 Naira on each bank draft, so the total amount in Naira that Musa will pay the bank will be:

5,025 Naira + 34 Naira = 5,059 Naira

Therefore, Musa will pay the bank a total of 5,059 Naira for the bank draft.