Question

A Businessman exchange Nepali currency rupees 660000 INR to US Dollar at the rate of Dollar 1 is equal to INR rupees 110 after 4 days Nepali currency is revaluated by 10% and he has changed the dollars INR to Nepali currency again what is his gain or loss find it

Answer 1

Gain = $666.67

Explanation:

The businessman exchanged 660000 INR to US Dollar using the exchange rate of $1 = INR 110

Value of the money in dollars is;

(660000 × 1)/110 = $6000

Now, Nepali currency is reevaluated by 10%. This means it's value has gone up by 10%.

Thus, exchange rate of $1 is now;

110 - 10%(110) = INR 99

Thus, 660000 INR to US Dollar using this new exchange rate gives;

(660000 × 1)/99 = $6666.67

Therefore he made a gain.

Gain = 6666.67 - 6000

Gain = $666.67