Answer to Question #259757 in Financial Math for Deprof

Question

A Nigerian visiting India changed #70200 to rupees at the rate of #3 to 3 rupees. He spent 224000 rupees and invested the remaining amount in the state bank of India at 4.5 % simple interest per annum. At the end of 8months, he transferred the capital and interest to his account in the Modern bank of Nigeria at the rate of 21rupees to #2. What was the amount in naira, credited to his account to the nearest naira

Answer 1

After changing #702000 to rupees at the rate of 3 rupees per #3 he had;

$\frac{702000}{3}\times 3=702000$ rupees

He then invested;

$702000-224000=478000$ rupees

At the end of 8 months; interest earned will be;

$478000\times\frac{4.5}{100}\times\frac{8}{12}=14340$ rupees

Capital plus interest will be;

14340+478000=492340 rupees.

At an exchange rate of #2 to 21rupees,he will have;

$\frac{492340}{21}\times$$2$ =$46889.52$ naira

Rounding off to the nearest naira,we get; 46890 naira