Question

The buying and selling rates of US $ I are NRs 119.25 and NRs 119.85 respectively. Rushbu has 300 USD and goes to a bank to exchange her dollars into Nepali currency. Is it sufficient to her to buy a television costing Rs 35,000 after allowing 10% discount and including 13% VAT from the Nepalese rupees which is exchanged with the dollars? Give reason.​

Answer 1

Rushbu exchanges 300 USD at the buying rate of NRs 119.25, so she will receive:

300 x 119.25 = NRs 35775

After allowing a 10% discount, Rushbu will need to pay:

35000 - (10/100 x 35000) = NRs 31500

Including 13% VAT, Rushbu will need to pay:

31500 + (13/100 x 31500) = NRs 35655

Since Rushbu received NRs 35,775 after exchanging her 300 USD, she will have enough Nepali currency to buy the television, even after accounting for the discount and VAT.

Therefore, Rushbu will have enough money to buy the television, and she will have NRs 120 less than she received from exchanging her 300 USD, but that does not affect her buying capacity in this case.