This mathematics problem involves applying core mathematical principles and formulas. Below you will find a complete step-by-step solution with detailed explanations for each step, helping you understand not just the answer but the method behind it.
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You're on a roll — here are the solutions to the remaining parts of problem 4: Given exchange rates: Bank buying rate for 1 = NRs. 141.64 Bank selling rate for 1 = NRs. 142.24 a) Which rate will the bank use to exchange Nepalese rupees into American dollar? Write it. When a customer exchanges Nepalese rupees into American dollars, the bank is selling American dollars. Therefore, the bank will use its selling rate. The rate is NRs. 142.24. b) How much American dollar () can be exchanged with NRs.7,96,544? Find it. Step 1: Identify the relevant exchange rate. To exchange Nepalese rupees into American dollars, the bank's selling rate for dollars is used. Bank selling rate = NRs. 142.24 per 1. Step 2: Calculate the amount of American dollars. Amount in \ = Total NRsBank selling rate Amount in \ = (7,96,544)/(142.24) Amount in \ = 5600 The final answer is \5600. c) If the Nepali rupees is devaluated by 0.3% after some time, what is the profit or loss made when the US dollar exchanged back in Nepali rupees? Find it. Step 1: Determine the original amount of NRs spent and the amount of obtained. Original NRs spent = NRs. 7,96,544 Amount of obtained = 5600 (from part b) Step 2: Calculate the new bank buying rate after devaluation. When the customer exchanges dollars back into Nepalese rupees, the bank buys dollars. Original bank buying rate = NRs. 141.64 per 1. Devaluation of NRs = 0.3% = 0.003. A devaluation of the Nepalese rupee means that 1 will now buy more Nepalese rupees. New bank buying rate = Original buying rate × (1 + Devaluation percentage) New bank buying rate = 141.64 × (1 + 0.003) New bank buying rate = 141.64 × 1.003 New bank buying rate = 142.06492 NRs per \1 Step 3: Calculate the amount of NRs received when exchanging 5600 back. NRs received = Amount in \ × New bank buying rate NRs received = 5600 × 142.06492 NRs received = 795563.52 Step 4: Calculate the profit or loss. Profit/Loss = NRs received - Original NRs spent Profit/Loss = 795563.52 - 796544 Profit/Loss = -980.48 Since the value is negative, it represents a loss. The final answer is a loss of NRs. 980.48. What's next?