Question

If 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) 2%
b) 4%
c) 6%
d) 8%

Answer 1

Mr. Gorkhe incurs a loss after buying pounds and selling them the next day due to the devaluation of the Pound Sterling by 10%. Therefore, there is no profit to calculate, and none of the answer choices provided are applicable.

Step-by-step explanation:

The question asks us to calculate the profit percent Mr. Gorkhe will make if he bought Pound Sterling (£) for Rs 26000 at a buying rate of Rs 148 and sold it the next day when the selling rate is Rs 150. However, we have to consider that the Pound Sterling has been devalued by 10%. To solve this, let's follow these steps:

1. Calculate how many pounds Mr. Gorkhe buys with Rs 26000 at Rs 148 per pound.
2. After devaluation, the selling rate of pounds will decrease by 10%, find this new selling rate.
3. Calculate how much Mr. Gorkhe will get in rupees when he sells pounds at the new selling rate.
4. Finally, calculate the profit percentage based on the cost price (Rs 26000) and the selling price (the amount from step 3).

Let's calculate each step in detail:

1. Mr. Gorkhe buys £: 26000 / 148 = 175.68 pounds (approximately).
2. New selling rate after devaluation: 150 - (10% of 150) = 150 - 15 = Rs 135 per pound.
3. Total selling price in rupees: 175.68 * 135 = Rs 23716.8.
4. Profit: 23716.8 - 26000 = -Rs 2283.2 (Mr. Gorkhe incurs a loss, not profit).

Since Mr. Gorkhe incurs a loss, there's no profit percent to calculate. In reality, the situation can result in a loss rather than a profit as assumed in the given options, which means none of the provided options (a - d) are correct.