Answer
- **5.1** Initial investment in USD: **$12,239.90**
- **5.2** Amount received in rand after selling: **R84,822.52**
- **5.3** The investor made a **loss**.
- **5.4** Amount of the loss: **R15,177.48**
- **6.1** R30 is equivalent to **318 Kenyan shillings**.
- **6.2** S30 is approximately equivalent to **R2.83**.
Solution
Let's break down the problem step by step.
### 5.1 Calculate the value of the initial investment in USD.
The initial investment in rand is R100,000, and the exchange rate is 1 USD = R8.17. To find the value in USD, we can use the formula:
\[
\text{USD} = \frac{\text{Rand}}{\text{Exchange Rate}}
\]
Substituting the known values:
\[
\text{USD} = \frac{100000}{8.17}
\]
### 5.2 Calculate the amount he received in rand when he sold the dollars.
After 17 months, the exchange rate is 1 USD = R6.93. The amount received in rand can be calculated as:
\[
\text{Rand Received} = \text{USD} \times \text{New Exchange Rate}
\]
Substituting the value of USD from the previous calculation:
\[
\text{Rand Received} = \left(\frac{100000}{8.17}\right) \times 6.93
\]
### 5.3 State whether the investor made a profit or a loss.
To determine if the investor made a profit or a loss, we compare the initial investment in rand (R100,000) with the amount received in rand after selling the dollars.
### 5.4 Calculate the amount of the profit or loss.
The profit or loss can be calculated as:
\[
\text{Profit/Loss} = \text{Rand Received} - \text{Initial Investment}
\]
Now, let's perform the calculations for 5.1 and 5.2 first.
Calculate the value by following steps:
- step0: Calculate:
\(\frac{100000}{8.17}\)
- step1: Convert the expressions:
\(\frac{100000}{\frac{817}{100}}\)
- step2: Multiply by the reciprocal:
\(100000\times \frac{100}{817}\)
- step3: Multiply:
\(\frac{100000\times 100}{817}\)
- step4: Multiply:
\(\frac{10000000}{817}\)
Calculate or simplify the expression \( (100000 / 8.17) * 6.93 \).
Calculate the value by following steps:
- step0: Calculate:
\(\left(\frac{100000}{8.17}\right)\times 6.93\)
- step1: Divide the numbers:
\(\frac{10000000}{817}\times 6.93\)
- step2: Convert the expressions:
\(\frac{10000000}{817}\times \frac{693}{100}\)
- step3: Multiply the numbers:
\(\frac{69300000}{817}\)
### 5.1 Value of the initial investment in USD
The value of the initial investment in USD is approximately:
\[
\text{USD} \approx 12239.90
\]
### 5.2 Amount received in rand when he sold the dollars
The amount received in rand when he sold the dollars is approximately:
\[
\text{Rand Received} \approx 84822.52
\]
### 5.3 Determine if the investor made a profit or a loss
Now, we compare the amount received in rand (R84,822.52) with the initial investment (R100,000):
- Initial Investment: R100,000
- Amount Received: R84,822.52
Since R84,822.52 is less than R100,000, the investor made a **loss**.
### 5.4 Calculate the amount of the profit or loss
The loss can be calculated as:
\[
\text{Loss} = \text{Initial Investment} - \text{Rand Received}
\]
Substituting the values:
\[
\text{Loss} = 100000 - 84822.52
\]
Now, let's calculate the loss.
Calculate the value by following steps:
- step0: Calculate:
\(100000-84822.52\)
- step1: Subtract the numbers:
\(15177.48\)
### 5.4 Amount of the loss
The amount of the loss is approximately:
\[
\text{Loss} \approx 15177.48
\]
### Summary of Results
- **5.1** Value of the initial investment in USD: **$12,239.90**
- **5.2** Amount received in rand when he sold the dollars: **R84,822.52**
- **5.3** The investor made a **loss**.
- **5.4** Amount of the loss: **R15,177.48**
---
Now, let's move on to the conversion of rand to Kenyan shillings and vice versa.
### 6.1 Convert R30 into shillings
Given the conversion rate of 10.6 Kenyan shillings = 1 South African rand, we can calculate:
\[
\text{Shillings} = \text{Rand} \times 10.6
\]
Substituting R30:
\[
\text{Shillings} = 30 \times 10.6
\]
### 6.2 Convert S30 shillings into rands
To convert shillings back to rand, we can use the inverse of the conversion rate:
\[
\text{Rand} = \frac{\text{Shillings}}{10.6}
\]
Substituting S30:
\[
\text{Rand} = \frac{30}{10.6}
\]
Let's perform these calculations.
Calculate the value by following steps:
- step0: Calculate:
\(30\times 10.6\)
- step1: Multiply the numbers:
\(318\)
Calculate or simplify the expression \( 30 / 10.6 \).
Calculate the value by following steps:
- step0: Calculate:
\(\frac{30}{10.6}\)
- step1: Convert the expressions:
\(\frac{30}{\frac{53}{5}}\)
- step2: Multiply by the reciprocal:
\(30\times \frac{5}{53}\)
- step3: Multiply:
\(\frac{30\times 5}{53}\)
- step4: Multiply:
\(\frac{150}{53}\)
### 6.1 Convert R30 into shillings
The conversion of R30 into Kenyan shillings is:
\[
\text{Shillings} = 30 \times 10.6 = 318
\]
### 6.2 Convert S30 shillings into rands
The conversion of S30 shillings back into rand is approximately:
\[
\text{Rand} \approx 2.83
\]
### Summary of Conversion Results
- **6.1** R30 is equivalent to **318 Kenyan shillings**.
- **6.2** S30 is approximately equivalent to **R2.83**.
If you have any further questions or need additional calculations, feel free to ask!
Reviewed and approved by the UpStudy tutoring team
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