CHAPTER

MONEY EXCHANGE
4
4.1 Currency and Exchange Rate

PRACTICE 4.1
Read / Understand / Think / Do
Keeping Skill Sharp
Use the exchange rate given above for the date 2079/10/09 to solve the following problems:
1. How much Nepali currency is paid to buy the following currencies by the bank ?
(a) £ 5562 (b) $ 3546
(c) Euro 5248 (d) Indian rupees 15,228
(e) Japanese yen 250368 (f) Canadian dollars $ 14,256
(g) Australian dollars $ 607 (h) Singapore dollars $ 3,568.
Solution:
(a) £ 5562 (b) $ 3546
Using buying rate Using buying rate
1 £ = Rs. 133.62 $ 1 = Rs. 108.97
∴ £ 5562 = Rs. 133.62 × 5562 ∴ $ 3546 = Rs. 108.97 × 3546
= Rs. 7,43,194.44 = Rs. 3,86,407.62
(c) Euro 5248 (d) Indian rupees 15,228
Using buying rate Using buying rate, INR for Rs. 160
Rs. 160
1 Euro = Rs. 113.54 INR 1 = 100
Rs. 160
∴ Euro 5248 = Rs. 113.54 × 5248 ∴ INR 15,228 = 100 × 15,228
= Rs. 5,95,857.92 = Rs. 24,364.80
(e) Japanese yen 250368 (f) Canadian dollars $ 14,256
Using buying rate Using buying rate
10 Japanese yen = Rs. 9.22 Canadian dollar $ 1 = 81.19
Rs. 9.22
1 Japanese yen = 10 ∴ Canadian dollar $ 14256
∴ 250368 Japanese yen = Rs. 81.19 × 14256
Rs. 9.22
= 10 × 250368 = Rs. 11,57,444.64
= Rs. 2,30,839.30
(g) Australian dollars $ 607 (h) Singapore dollars $ 3,568.
Using buying rate Using buying rate
Aus $ 1 = Rs. 78.59 Singapore dollars $ 1 = Rs. 75.17
∴ Aus $ 607 = Rs. 78.59 × 607 ∴ Singapore $ 3568 = Rs. 75.17 × 3568
= Rs. 47,704.13 = Rs. 2,68,206.56

1
2. (a) If $1 = Rs. 130.85, how much Nepalese rupees are exchanged from $ 5?
(b) How much pounds will be equal to Rs. 36410.25 if 1 pound (£) = Rs. 157.62 ?
(c) How much Nepali currency will be needed to buy Canadian dollar 4500 if 1 Canadian
dollar = Rs. 96.90?
(d) Using the rate of Rs. 129.85 per US dollar, what is the US dollar for Rs. 3246.25 ?
(e) If IC Rs. 2500 is equal to NC Rs. 4009.75, write down the rate of IC Re. 1.
(f) How much Euro can be exchanged with Rs. 56000? (1 Euro = Rs. 139.46)
Solution:
(a) Given, $ 1 = Rs. 109.45
∴ $ 5 = Rs. 130.85 × 5 = Rs. 654.25
∴ 654.25 Nepalese rupees are exchanged from $ 5.
(b) Given, 1 £ = Rs. 157.62
1
∴ Rs. 36410.25 = £ 157.62 × 36410.25 = £ 231
(c) Given, 1 Canadian dollar = Rs. 96.90
∴ 4500 Canadian dollar = Rs. 96.90 × 4500 = Rs. 4,36,050.
(d) Given, 1 US dollar = Rs. 129.85
3246.25
∴ Rs. 3353.40 = 129.85 US $ = 25 US $
(e) Given, IC Rs. 2500 = NC Rs. 4009.75
4009.75
∴ IC Rs. 1 = NC Rs. 2500 = NC Rs. 1.6039 ~ NC Rs. 1.6.
(f) Given, 1 Euro = Rs. 139.46
56000
∴ Rs. 56000 = 139.46 = 401.55 Euro
3. (i) Indian Rs. 100 worths Rs. 160 for buying purpose. A Nepali worker has Rs. 2,00,765
(Indian)?
(a) What is currency ? Define it.
(b) What amount of money will the worker get in Nepal ? Find.
(ii) Sohan has to arrange Indian rupees 5,00,500 for the treatment of health. (IC Rs. 100 = NC
Rs. 160.15)
(a) What is exchange rate ? Define it.
(b) How much Nepali rupees does he need for this purpose?
Solution:
(i) (a) Currency is a medium of exchange for goods and services.
(b) Given, Buying rate,
Rs. 100 INR = NC Rs. 160
Rs. 160
2,00,765 INR = NC 100 × 2,00,765 = NC Rs. 3,21,224
∴ He will get NC Rs. 3,21,224 in Nepal.
(ii) (a) The value of one currency for the purpose of conversion to another, is called exchange rate.
(b) Buying rate,
100 INR = NC Rs. 160.15
160.15
5,00,500 INR = NC Rs. 100 × 5,00,500 = NC Rs. 8,01,550.75
∴ He will get NC Rs. 8,01,550.75 for this purpose.
2
4. (i) According to the notice of Nepal Rastra Bank, $ 1 = Rs. 115.76. If a commercial bank takes
2% commission on it, how much Nepali currency does $ 1 get ?
(ii) According to the notice of Nepal Rastra Bank, Chinese Yuan 1 = Rs. 16.68. If the Nepali
currency is devaluated by 10%, how much Nepali currency does 1 Chinese Yuan get ?
Solution:
(i) Given, $ 1 = Rs. 115.76
Commission rate = 2%
Received money with deduction of commission amount
2
= Rs. 115.76 – 2% of Rs. 115.76 = Rs. 115.76 – 100 × Rs. 115.76
= Rs. 115.76 – Rs. 2.32 = Rs. 113.46
(ii) Given, exchange rate Chinese Yuan 1 = Rs. 16.68
Devaluate rate of Nepalese
Currency = 10%
New exchange rate,
Chinese Yuan 1 = Rs. 16.68 + 10% of Rs. 16.68 = Rs. 16.68 + 1.67 = Rs. 18.35
∴ 1 Chinese Yuan gets NPR 18.35.
Check Your Performance
Answer the following questions for each problem.
5. (i) A Nepali citizen working in Malaysia brings an amount of Malaysian Ringgit (RM) 75000
to his home. He goes to the bank to exchange it into Nepali currency and the bank takes
2% commission on it. [Using buying rate, RM 1 = Rs. 29.86 and selling rate, RM 1 = Rs.
30.20]
(ii) A Nepali citizen working in Dubai brings an amount of Emirati Dirham (AED) 75000 to
his home. He goes to the bank to exchange it into Nepali currency and the bank takes 2%
commission on it. [Using buying rate, AED 1 = Rs. 36.03 and selling rate, AED 1 = Rs.
36.52]
(a) What is money exchange ? Define it.
(b) How much Nepali currency does the bank take as commission ? Find it.
(c) How much Nepali currency will he get after giving commission ? Find it.
(d) What is the new exchange rate for him after commission ?
Solution:
(i) (a) A currency exchange is a company with the legal right to help people exchange money from
one country into money from another.
(b) A Nepali citizen has RM 75,000. He exchanges RM with Nepali rupees i.e. he sells to a
bank. So, we use buying exchange rate
For buying exchange rate, 1 RM = Rs. 29.86
Commission rate = 2%, Commission amount = ?
Now, 1 RM = Rs. 29.86
75000 RM = Rs. 29.86 × 75000 = Rs. 22,39,500
2
∴ Commission amount = 2% of Rs. 22,39,500 = 100 × Rs. 22,39,500 = Rs. 44,790.
Hence, the bank takes Rs. 44,790 as commission amount.

3
 (c) He receives Rs. 22,39,500 – Rs. 44,790 = Rs. 21,94,710.
(d) New exchange rate after commission,
RM 1 = Rs. 29.86 – 2% of Rs. 29.86 = Rs. 29.86 – 0.5972 = Rs. 29.26
(ii) (b) Money Nepali citizen has = AED 75000
Since he exchange this money with Bank for Nepali rupees, so we use buying exchange
rate. The buying exchange rate is,
AED 1 = Rs. 36.03
∴ AED 75000 = Rs. 36.03 × 75000 = Rs. 27,02,250
∴ Commission amount in Nepali currency = 2% of Rs. 27,02,250
2
= 100 × Rs. 27,02,250 = Rs. 54,045
(c) Money he receives after giving commission = Rs. 27,02,250 – Rs. 54,045
= Rs. 26,48,205.
(d) New exchange rate after commission is,
1 AED = Rs. 36.03 – 2% of Rs. 36.03 = Rs. 36.03 – 0.7206 = Rs. 35.31.
6. (i) A Nepali goes to London and back from London from time to time. He is exchanging the
pound sterling each time. The bank takes 2% commission each time also. [Buying rate £ 1
= Rs. 133.62, selling rate £ 1 = Rs. 134.36]
(a) Find out how much Nepali rupees can be exchanged for £ 15,500 when coming from
London.
(b) When he wants to go back to London, how many Nepali rupees is required to get
$15,500?
(c) How much percent does he gain or lose in the exchange transaction? Find.
(ii) A business person comes from USA and goes to USA from time to time. He is exchanging
the US dollar each time. The bank takes 3% commission each time also. [Buying rate $ 1 =
Rs. 132.17, selling rate $ 1 = 132.97]
(a) Find out how much Nepali rupees can be exchanged for £ 18,200 when coming from
London.
(b) When he wants to go back to London, how many Nepali rupees is required to get
$18,200?
(c) How much percent does he gain or lose in the exchange transaction? Find.
(iii) A student studying in Australia has to arrange AUD $ 24200 for the university fee. (Using
buying rate, AUD $ 1 = Rs. 87.32 and selling rate, AUD $ 1 = Rs. 88.03)
(a) Which exchange rate is used for converting Nepali currency into foreign currency?
(b) How much money (Nepali Rupees) does he need to pay for fee? Find.
(c) If it is not needed for the fee after exchanging Australian dollar because of a problem,
he would sell it to the bank. How much Nepali currency does he get from it?
(d) How much percent does he gain or lose in the exchange transaction? Find.
Solution:
(i) (a) Since £ 15,500 is being exchanged for Nepali rupees, so we use buying exchange rate.
∴ £ 1 = Rs. 133.62
∴ £ 15,500 = Rs. 133.62 × 15,500 = Rs. 20,71,110
∴ Nepali rupees that he gets after commission of 2%
= Rs. 20,71,110 – 2% of Rs. 20,71,110 = Rs. 20,71,110 – Rs. 41,422.20

4
 = Rs. 20,29,687.80
∴ When coming from London, £ 15,500 can be exchanged for Nepali rupees 20,29,687.80.
(b) Now, since he want to buy £ 15,500, so weuse the selling rate for bank
Selling rate £ 1 = Rs. 134.36
Now, £ 1 = Rs. 134.36
∴ £ 15,500 = Rs. 134.36 × 15,500 = Rs. 20,82,580
∴ Money that he requires after 2% commission amount
= Rs. 20,82,580 + 2% of Rs. 20,82,580 = Rs. 20,82,580 + Rs. 41,651.60
= Rs. 21,24,231.60
∴ She requires Nepali rupees 21,24,251.60 to get $ 15,500.
(c) Initially she had after exchanging with £ 15,500 i.e. selling amount = Rs. 20,82,580.
Next time money required to exchange for £ 15,500
i.e. Buying amt = Rs. 21,24,251.60
∴ She has to pay more
i.e. She has loss
2124251.60 – 2082580
∴ Loss% = × 100% = 1.96%
2124251.60
∴ He loses 1.96% in the exchange transaction.
(ii) (a) Money to be exchanged = $ 18,200
Since he exchange for dollar, so we use buying rate.
The buying rate is,
$ 1 = Rs. 132.15
∴ $ 18,200 = Rs. 132.17 × 18200 = Rs. 2405494
∴ Money he receives after 3% commission
= Rs. 24,05,494 – 3% of Rs. 24,05,494 = Rs. 24,05,494 – Rs. 72,164.82
= Rs. 23,33,329.18
(b) If he wants to get $ 18,200 then we have to use selling rate.
The selling rate is
$ 1 = Rs. 132. 97
∴ $ 18,200 = Rs. 132.97 × 18,200 = Rs. 24,20,054
∴ Money required after giving 3% commission
= Rs. 24,20,054 + 3% of Rs. 24,20,054 = Rs. 24,20,054 + Rs. 72,601.62
= Rs. 24,92,655.62
(c) Initial money received after exchange
$ 18,200 selling amount = Rs. 24,20,054
Money required for getting $ 18,200 = Rs. 24,92,655.62
There is loss.
2492655.62 – 2420054
∴ Loss% = × 100% = 2.91%
2492655.62
∴ He loses 2.91% in the exchange transaction.
(iii) (a)Since the student buys Aus $ from the bank i.e. the bank sells the dollar, so we use selling
exchange rate for converting Nepali currency into foreign currency.
(b) Using selling exchange rate we have

5
 Aus $ 1 = Rs. 88.03
∴ Aus $ 24200 = Rs. 88.03 × 24200 = Rs. 2130326
∴ He needs to pay Rs. 21,30,326 to pay for fee at Australia.
(c) He sells Aus $ 24,200 to the bank.
we use buying rate in this case
∴ For buying rate
Aus $ 1 = Rs. 87.32
∴ Aus 24,200 = Rs. 87.32 × 24,200 = Rs. 21,13,144.
∴ He gets Rs. 21,13,144 from the exchange of Aus $ 24,200.
For the student,
Buying amt = Rs. 21,30,326
Selling amt = Rs. 21,13,144
Since Buying amt > Selling amt
There is loss
2130926 – 2113144 17182
∴ Loss% = × 100% = 2130326 × 100% = 0.81%
2130326
He loses 0.81% in the exchange transaction.
7. (i) Given that $ 25(US) = Rs. 1596.26 and Rs. 4036.20 = $ 62 (CA).
(a) How much US Dollar and pound sterling can we get from Re. 1 ? Find.
(b) Find how much US dollars can we get for $ 82 (CA).
(c) Which currency is expensive the US dollar or Canadian dollar by how much percent?
(ii) It is given that ¥ 100 Japanese = Rs. 55.90 and Rs. 4397 (Nep) = $ 100(Singapore).
(a) How much Japanese Yens and Singapore Dollars can we get from Re. 1? Find.
(b) Find how much Singapore Dollars she gets for Japanese ¥ 5,00,500 (CA).
(c) Which currency is expensive the Japanese Yen or Singapore dollar by how much
percent?
(iii) (a) How much will be the profit percentage if an article is bought for $ 1 and sold for £
1? [$ 1 = Rs. 112.56 and £ 1 = Rs. 168.34]
(b) How much will be the profit or loss percentage if an article bought for £ 1 is sold for
$ 1? [$ 1 = Rs. 112.56 and £ 1 = Rs. 168.34]
Solution:
(i) (a) We get $ 0.0157 (US) and $ 0.0154 (CA) from Re. 1.
(b) Let she gets x US dollars for $ 82 (CA)
then, $ 25 (US) = Rs. 1596.26
Rs 4036.20 = $ 62 (CA)
$ 82 (CA) = $ x (US)
By chain rule we have,
25 × 4036.20 × 82 = 1596.26 × 62 × x
25 × 4036.20 × 82
∴ x=
1596.26 × 62 = 83.60
(b) She gets US $ 83.60 for $ 82 (CA).
(In real US $ have more value than CA $)
(c) Here, $ 82 (CA) = US $ 83.604

6
 83.604
or, 1 (CA) = US $ 82 = US $ 1.02
∴ $ 1 (CA) = US $ 1.02
∴ Canadian dollar is more expensive than US dollar.
1.02 – 1 0.02
Reqd. % = 1.02 × 100% = 1.02 × 100% = 1.96%
Canadian dollar is more expensive than US dollar by 1.96%.
(ii) (a) We get ¥ 1.7889 (Yen) and $ 0.0227 (Singapore) from Re. 1.
(b) Let she get x Singapore dollars for Japanese ¥ 500500
Now, ¥ 100 Japanese = Rs. 55.90
Rs. 4337 = $ 100 (Singapore)
x (Singapore) = ¥ 5,00,000
By chain rule we have,
100 × 4397 × x = 55.90 × 100 × 5,00,500
55.90 × 100 × 500500
∴ x= 100 × 4397 = $ 6362.96 (Singapore)

∴ She gets $ 6362.96 (Singapore) for Japanese ¥ 5,00,500.

(c) Since, $ 6362.96 Singapore = ¥ 5,00,500
∴ Singapore dollar is expensive.
500500 – 6362.96
% Singapore dollar is expensive than ¥ = 500500 × 100% = 98.73%
Singapore dollar is expensive than ¥ by 98.73%
(iii) (a) Cost price of article (CP) = $ 1
SP = £ 1
Let, £ 1 = $ x
Now, $ 1 = Rs. 112.56
Rs. 168.34 = £ 1
£1=$x
By chain rule, we have,
1 × 168.34 × 1 = 112.56 × 1 × x
168.34
∴ x = 112.56 = $ 1.4975
∴ £ 1 = $ 1.4975
∴ SP = $ 1.4975
∴ SP > CP. So, there is profit.
∴ Profit = SP – CP = $ 1.4975 – $ 1 = $ 0.4975
$ 0.4975
Profit % = 1 × 100% = 49.75%
(b) CP of article = £ 1 = 1 × Rs. 168.34 = Rs. 168.34
SP of article = $ 1 = 1 × Rs. 112.56 = Rs. 112.56
∴ CP > SP, there is loss
∴ Loss = CP – SP = Rs. 168.34 – Rs. 112.56 = Rs. 55.78
Loss 55.78
Loss% = CP × 100% = 168.34 × 100% = 33.14%

7
8. (i) A man buys US $ 15000 in one day. The next day Nepali currency is devaluated by 20%.
(Before devaluation buying rate, 1 US $ = Rs. 132.53, selling rate, US $ 1 = Rs. 133.17)
(a) What is the meaning of devaluation of Nepali currency?
(b) How much Nepali currency is needed to buy US $ 15000 on the first day? Find.
(c) What is the new rate after devaluation of Nepali currency by 20% ? Find.
(d) What percentage of profit will he get if he sells the US dollars the next day?
(ii) Sunaina purchased UK £12000 in the usual selling rate. The next day Nepali currency was
revaluated by 6%. (Before devaluation buying rate, 1 UK £ = Rs. 172.43, selling rate, 1 UK
£ 173.48)
(a) What is the meaning of revaluation of Nepali currency?
(b) How much Nepali currency is needed to buy UK £12000 on the first day? Find.
(c) What is the new rate after revaluation of Nepali currency by 6% ? Find.
(d) What percentage of profit or loss will she get if she sells the UK £ the next day?
Solution:
(i) (a) Revaluation of Nepali currency means the value of one currency is reduced against another.
i.e., one currency loses value against another.
(b) Since the man buys $ 15000 in 1st day.
∴ using selling rate we have,
US $ 1 = Rs. 13317
∴ US $ 15000 = Rs. 133.17 × 15000 = Rs. 19,97,550
∴ Rs. 19,97,550 is needed to buy US $ 15000 on first day.
(c) After devaluation of Nepali currency by 20%, the new buying exchange rate
1 US $ = Rs. 132.53 + 20% of Rs. 132.53
20
= Rs. 132.53 + 100 × Rs. 132.53 = Rs. 132.53 + Rs. 26.51 = Rs. 159.04

∴ New rate after devaluation of Nepali currency by 20% is Rs. 159.04.

(d) Money man get by selling $ 15000 = 15000 × Rs. 159.04 = Rs. 23,85,600.
Here selling amount = Rs. 23,85,600
Buying amount = Rs. 19,97,550
∴ There is profit.
Selling amount – buying amount
Profit % = Buying amount × 100%
Rs. 2385600 – Rs. 1997550 Rs. 388050
= Rs. 1997550 × 100% = Rs. 1997050 × 100% = 19.43%
∴ He will get 19.43% profit if he sells the $ next day.
(ii) (a) Revaluation of Nepali currency means the value of one currency is increased against
another. i.e., one currency gains the value against another.
(b) Pound purchased by Seraina i.e.
buying amount = UK £ 12,000
Using selling rate we have,
1 UK £ = Rs. 173.48
∴ UK £ 12000 = Rs. 173.48 < 12000 = Rs. 2081760
∴ Buying (NC) amount = Rs. 20,81,760
∴ She needs Rs. 20,81,760 rupees to buy £ 12000 on 1st day.

8
 (c) Revaluated rate = 6%
Since Nepali currency is revaluated next day
Now buying exchange rate
6
1 UK £ = Rs. 172.43 – 6% of Rs. 172.43 = Rs. 172.43 – 100 × Rs. 172.43
= Rs. 172.43 – Rs. 10.35 = Rs. 162.08
(b) Here buying amt = Rs. 20,81,780
Selling amount = Rs. 162.08 × 12000 = Rs. 19,44,960
∴ Buying amount > Selling amount so there is loss
Loss Rs 2081780 – Rs. 1944960
∴ Loss % = CP × 100% = Rs. 2081780 × 100%
Rs. 136820
= Rs. 2081780 × 100% = 6.57%

∴ He will get 6.57% loss if he sells UK £ the next day.

9. (i) How many US $ can be bought with the amount of Nepali currency that can buy £ 200 after
allowing 10% devaluation in Nepali currency and 4% bank commission ? (Before
devaluation selling rate, 1 US $ = Rs. 109.45, buying rate £ 1 = Rs. 150.26)
(ii) How many pound sterling (£) can be bought with the amount of Nepali currency that can
buy $ 1200 after allowing 20% devaluation in Nepali currency and 3% bank commission?
(Before devaluation, buying rate 1 US $ = Rs. 109.45, selling rate £1 = Rs. 150.26)
Solution:
(i) Since, 1 £ = Rs. 150.26
∴ 200 £ = Rs. 150.26 × 200 = Rs. 30,052
Since Nepali currency is devaluated by 10%
In buying rate, 1 $ = Rs. 109.45 + 10% of Rs. 109.45 = Rs. 109.45 + Rs. 10.945 = Rs. 120.395
Let, x dollar is bought for Rs. 30,052.
Now, 120.395 × x + 4% of (120.395 x) = Rs. 30052
4
or, 120.395x + 100 × 120.395 x = Rs. 30052

or, 120.395x + 1 + 25 = Rs. 30052

1
 
or, 120.395x(1.04) = Rs. 30052
Rs. 30052
or, x = 125.2108 = 240
∴ 240 US dollar can be bought with the amount of Nepali currency that can buy £ 200.
(ii) Since, 1 $ = Rs. 109.45
∴ $ 1200 = Rs. 109.45 × 1200 = Rs. 131,340
Since Nepali currency is devaluated by 20%, in buying rate,
£ 1 = Rs. 150.26 + 20% of Rs. 150.26 = Rs. 150.26 + Rs. 30.052 = Rs. 180.312
Let £ x pound can be bought for Rs. 1,31,340. Then,
Rs. 180.312x + 3% of (180.312x) = Rs. 1,31,340
or, 180.312x(1 + 3%) = Rs. 1,31,340
or, 180.312x (1.03) = Rs. 1,31,340
131340 131340
or, x = 180.312 × 1.03 = 185.72136 = 707.19
∴ £ 707.19 can be bought with the amount of Nepali currency that can buy $ 1200.
9
10. (i) A washing machine is purchased for Dinar 85 in the Kuwait paying 1.5% transportation
cost, 110% custom was paid in the custom office and sold for a profit of 150%. (Dinar 1 =
Rs. 355.70)
(a) How much amount is to be paid for transportation in Nepali currency? Find.
(b) How much amount is to be paid for custom duty? Find.
(c) How much amount would gain on selling the machine? Find.
(d) What is the selling price of the machine in Nepal ? Calculate.
(ii) 3 Refrigerators bought for Japanese Yen ¥ 25,000 each paying 2% transportation charge
and 115% customs was paid in the customs office. The refrigerators were sold at a profit
of 50%. (¥ 10 = Rs. 9.22)
(a) How much amount is to be paid for transportation in Nepali currency? Find.
(b) How much amount is to be paid for custom duty? Find.
(c) How much amount would gain on selling the machine? Find.
(d) What is the selling price of the machine in Nepal ? Calculate.
Solution:
(i) Given, Purchase price of washing machine = Dinar 85
∴ 1 Dinar = Rs. 355.70
∴ Purchase price = 85 × Rs. 355.70 = Rs. 30,234.50
1.5
(a) Transportation cost = 1.5% of purchase price = 100 × Rs. 30,234.50 = Rs. 453.52.
110
(b) Many paid to custom duty = 110% of purchase price = 100 × Rs. 30,234.50
= Rs. 33.257.95
(c) Total CP with transportation cost and custom duty
= Rs. 30,234.50 + Rs. 453.52 + Rs. 33,257.95
= Rs. 63,945.97
150
Gain = 150% of Rs. 63,945.97 = 100 × Rs. 63,945.97 = Rs. 95,918.96
150
(d) SP of Machine = CP + Profit of CP = Rs. 63,945.97 + 100 × Rs. 63,945.97
= Rs. 63,945.97 + Rs. 95918.96 = Rs. 1,59,864.93.
Rs. 9.22
(ii) Here, Initial CP of 3 refrigerators = Yen ¥ 25,000 = 10 × 25000 = Rs. 23,050.
(a) Transportation charge for 3 refrigerations = 3 × 2% of Rs. 23050
6
= 100 × Rs 23050 = Rs. 1383
(b) Amount to be paid for custom duties of 3 refrigerators
345
= 3 × 115% of Rs. 23050 = 100 × Rs. 23050 = Rs. 79,522.50
(c) Total CP with transportation charge and custom duties
= Rs. 23050 + Rs. 1383 + Rs. 79522.50 = Rs. 1,03,955.50.
∴ Gain amount = 50% of Rs. 1,03,955.50 = Rs. 51,977.75
(d) SP of refrigerators = CP + Gain = Rs. 1,03,955.50 + Rs. 51,977.75 = Rs. 1,55,933.25.

10
11. (i) A businessman paid 5% inter-port tax in Kolkata port and 150% custom duty at
Kathmandu airport to bring some domestic goods costing $ 24835.50. He takes 25%
commission on it and 13% VAT in total. ($ 1 = Rs. 115.52)
(a) How much amounts are to be paid for inter-port tax and custom duty? Find.
(b) How much amount is to be paid for commission? Find.
(c) How much amount is to be paid for VAT? Find.
(d) Find the cost of the goods when arrived at Kathmandu.
(ii) A woman bought 2500 pieces of Nepali caps for Rs. 250 each in Nepal and exported in
Germany including 15% export tax and 10% transpiration charge. She made a profit of
150%. (Euro 1 = Rs. 132.57)
(a) How much amounts are to be paid for export tax? Find.
(b) How much amount is to be paid for transportation charge? Find.
(c) How much amount does she get profit? Find.
(d) How much amount is the selling price of each cap in Germany? Find.
Solution:
(i) (a) Initial cost of domestic goods = $ 24835.50 = 24835.50 × 115.32 = Rs. 28,68,996.96
Amount to be paid for inter-port tax = 5% of Rs. 28,68,996.96 = Rs. 1,43,449.85
Amount to be paid for custom duty = 150% of 28,68,996.96 = Rs. 43,03,495.44
(b) Total cost with inter port tax and custom duty
= Rs. 28,68,996.96 + Rs. 1,43,449.85 + Rs. 43,63,495.44 = Rs. 73,75,942.25
∴ Total commission to be paid = 25% of Rs. 73,75,942.25
25
= 100 × Rs. 73,75,942.25 = Rs. 18,43,985.56
(c) Cost of goods with inter port tax, custom duty and commission
= Rs. 73,75,942.25 + Rs. 18,43,985.56 = Rs. 92,19,927.81
∴ VAT amount to be paid = 13% of Rs. 92,19,927.81
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= 100 × Rs. 92,19,927.81 = Rs. 1198590.62
(d) The cost of goods when arrived at KTM = Rs. 92,19,927.81 + Rs. 1198590.62
= Rs. 10418518.43
(ii) CP of 2500 pcs of caps = Rs. 250 × 2500 = Rs. 6,25,000
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(a) Amount paid for export tax = 15% of Rs. 6,25,000 = 100 × Rs. 6,25,000 = Rs. 93,750
(b) Amount paid for transportation charge = 10% of Rs. 6,25,000 = Rs. 62,500
(c) Profit% = 150%
Total CP = CP of 2500 pcs of caps + Export tax + transportation charge
= Rs. 6,25,000 + Rs. 93,750 + Rs. 62,500 = Rs. 7,81,250
150
Profit amount = 150% of Rs. 7,81,250 = 100 × Rs. 7,81,250 = Rs. 11,71,875
(d) SP of 2500 caps = CP + Profit amount = Rs. 7,81,250 + Rs. 11,71,875 = Rs. 19,53,125
Rs. 1953125
∴ SP of 1 cap = 2500 = Rs. 781.25
Now 1 Euro = Rs. 132.57
781.25
∴ Rs. 781.25 = 132.57 Euros = 5.89 Euros.
∴ SP of each cap in Germany is 5.89 Euros.

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