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Grade -10 (SEE) Math Arithmetic, Money Exchange

Currency is revaluated by 10% and what is the gain or loss? Find it.

A businessman exchanged Nepali currency Rs. 6,60,000 into US dollar at the rate of $1 = NRs. 110. After four days Nepali currency is revaluated by 10% and he exchanged the dollars into Nepali currency again. What is his gain or loss? Find it.

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Solution:
Given,

US $1 = NRs. 110
Exchanged currency = NRs. 6,60,000
Revaluated rate of nepali currency = 10%

To find,

Profit or loss when US dollar is re-exchanged into Nepali currency

According to the initial rate of exchange,

NRs 110 = US $1
Or, NRs 1 = US $1/110
Or, NRs 6,60,000 = $6,60,000/110
= $6000

Here, when Nepali currency is revaluated by 10%, then the new rate of exchange becomes

$1 = NRs 110 - 10% of NRs 110
= NRs 110 - NRs 11
= NRs 99

Now, according to the new rate of exchange

US $1 = NRs. 99
∴ $6000 = NRs. 5,94,000

Here, Nepali currency received by re-exchange is less than the initial currency. So, there is a loss

∴ loss = Initial currency - currency received after re-exchange

= NRs 6,60,000 - NRs 5,94,000
= NRs. 66,000

∴ The loss for businessman is NRs. 66,000

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