A Kenyan bank buys and sells foreign currencies
Buying (Ksh) Selling(Ksh)
1 Sterling pound 130.10 130.54
1 South African Rand 9.52 9.8
A businessman on a trip to Kenya had pound 50,000 which he coneveted to Kenya shillings. While in Kenya, he spent 80% of the money and changed the balance to South African Rand.
Calculate, to the nearest Rand, the amount he obtained,
1st ... sterling pound to Ksh ... Ksh1 = 50000 * 130.10
2nd ... 20% of Ksh to rand ... rand = Ksh1 * .20 / 9.8
To calculate the amount of South African Rand (ZAR) that the businessman obtained after spending 80% of his British Pound (GBP) money, we need to follow these steps:
Step 1: Calculate the amount of GBP spent:
Amount spent = 80% of GBP
Amount spent = 0.8 * GBP
Step 2: Calculate the remaining balance in GBP after spending:
Remaining balance = GBP - Amount spent
Step 3: Convert the remaining balance from GBP to Kenyan Shillings (KES):
KES = Remaining balance * Selling rate for GBP (130.54)
Step 4: Convert the remaining balance from KES to South African Rand (ZAR):
ZAR = KES * Buying rate for ZAR (9.52)
Now, let's plug in the values to calculate:
Step 1: Calculate the amount of GBP spent:
Amount spent = 0.8 * 50,000 (GBP)
Amount spent = 40,000 (GBP)
Step 2: Calculate the remaining balance in GBP after spending:
Remaining balance = 50,000 (GBP) - 40,000 (GBP)
Remaining balance = 10,000 (GBP)
Step 3: Convert the remaining balance from GBP to Kenyan Shillings (KES):
KES = 10,000 (GBP) * 130.54 (selling rate for GBP)
KES = 1,305,400
Step 4: Convert the remaining balance from KES to South African Rand (ZAR):
ZAR = 1,305,400 (KES) * 9.52 (buying rate for ZAR)
ZAR ≈ 12,444,608
Therefore, the businessman obtained approximately 12,444,608 ZAR.