Question

Bishal brought US $ for Rs. 590215. The next day US $ was devaluated by 5%. If he exchanges Nepalese rupees next day, what is his loss percentage? (Before devaluation, buying rate, 1 US$ Rs 112.53, selling rate, I US $= Rs. 113.78)

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Answer 1

To find Bishal's loss percentage after the devaluation of the US dollar, we calculate the new exchange rate and the new value of the US dollars exchanged. Then, we use the formula to determine the loss percentage.

Step-by-step explanation:

To find Bishal's loss percentage after the devaluation of the US dollar, we need to determine the new exchange rate and calculate the difference in the value of the US dollars he exchanged.

First, we need to calculate the new exchange rate after the 5% devaluation. Before devaluation, the buying rate was 1 US dollar = Rs. 112.53.

To find the new buying rate, we need to reduce the old buying rate by 5% (multiply it by 0.95).

New buying rate = 112.53 * 0.95 = 106.905

Next, we can calculate the new value of the US dollars Bishal exchanged based on the new buying rate.

New value in Nepalese rupees = 590215 / 106.905 = 5518.66

Now, we can calculate the loss percentage using the formula:

Loss percentage = (Original value - New value) / Original value * 100

Loss percentage = (590215 - 5518.66) / 590215 * 100

Loss percentage = 99.06%