Assume that the exchange rate remains at R15:£1 there is also a flat transaction fee of R50 each time he wants to convert his money from one currency to another.how much money would Oswald have to borrow in order to make profit of R1 000
To make a profit of R1,000, Oswald would need to borrow an amount that would allow him to generate at least R1,000 after accounting for the exchange rate and transaction fee.
Let x be the amount in British pounds that Oswald borrows. After converting this amount to South African Rand, Oswald would receive x * 15 - 50 Rand (taking into account the conversion fee).
In order to make a profit of R1,000, Oswald would need to satisfy the following equation:
x * 15 - 50 = x * 15 - 50 + 1000
Solving for x:
x * 15 - 50 = x * 15 - 50 + 1000
x * 15 = x * 15 + 1000
0 = 1000
Since the equation has no solution, Oswald cannot borrow an amount of money that would allow him to make a profit of R1,000 in this scenario.