Question

If the selling rate and the buying rate of 1 Pound Sterling (£) are Rs 150 and Rs 148 respectively. Mr. Gorkhe bought Pound Sterling (£) for Rs 26000 and sold it the next day. What will be the profit percent if NC is devaluated by 10%?

a) 1%
b) 2%
c) 3%
d) 4%

Answer 1

To calculate the profit percentage when the exchange rate of the pound changes, we need to first calculate the buying and selling rates after the devaluation. Then, we can calculate the profit and the profit percentage.

Step-by-step explanation:

To calculate the profit percentage when the exchange rate of the pound changes, we need to first calculate the buying and selling rates after the devaluation. Since the buying rate is Rs 148 and the pound is devaluated by 10%, the new buying rate will be 148 * (1 - 0.10) = Rs 133.2. Similarly, the new selling rate will be 150 * (1 - 0.10) = Rs 135. Now, let's calculate the profit:

Cost price (CP) = Rs 26000
Selling price (SP) = No. of pounds bought * selling rate = Rs 26000 / 150 * 135 = Rs 29400

Profit = SP - CP = Rs 29400 - Rs 26000 = Rs 3400

Profit percentage = (Profit / CP) * 100 = (3400 / 26000) * 100 = 13.08%