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Ram exchanged some Nepali rupees with American dollars at the Exchange rate of $1=Rs. 110. After 5 days, Nepali currency devalued against American dollars by 10% and he made a profit of Rs. 33,000 by exchanging the same dollars into Nepali currency again.

a) What is meant by exchange rate of currency?

b) How much Nepalese rupees are equal to one American dollar ($1) after devaluation of the Nepali currency?

c) Find how much Nepali rupees did Ram exchange with American dollars at first?

User Rshepherd
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a) The exchange rate of currency refers to the value at which one currency can be exchanged for another. It determines the ratio at which one currency is worth in terms of another currency.

b) After the devaluation of the Nepali currency by 10%, the new exchange rate would be $1 = Rs. 99 (since the value of the Nepali rupee decreased by 10%).

c) To find out how much Nepali rupees Ram exchanged with American dollars at first, we can use the information given in the problem. Ram made a profit of Rs. 33,000 by exchanging the same dollars into Nepali currency again. Since the exchange rate was $1 = Rs. 110 initially, we can calculate the amount of dollars Ram exchanged by dividing the profit by the exchange rate: Rs. 33,000 / Rs. 110 = $300. Therefore, Ram initially exchanged $300 with Nepali rupees.
User Quinxy Von Besiex
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