Math Mantra Nepal (MMN) – Class 10 SEE Money Exchange Notes, Formulas & Questions

Math Mantra Nepal (MMN) Prepared by: Kailash Pahari

Class 10 SEE Mathematics: Money Exchange & Valuation

Concept Notes, Flowcharts & Essential Formulas

(कक्षा १० को SEE गणितका लागि मुद्रा विनिमयका सम्पूर्ण सिद्धान्त, फ्लोचार्ट तथा सूत्रहरू)

1. Basic Definitions & Concepts

Currency

Currency is an official system of money used in a particular country to buy goods and services.

(कुनै पनि देशमा वस्तु तथा सेवा खरिद-बिक्री गर्न प्रयोग गरिने आधिकारिक रकमलाई मुद्रा भनिन्छ।)

Examples: NPR (Nepal), USD (USA), GBP (UK), INR (India), AUD (Australia), CAD (Canada)

Money Exchange

Money Exchange is the process of converting the currency of one country into the currency of another country based on a fixed exchange rate.

(एउटा देशको मुद्रालाई तोकिएको विनिमय दरको आधारमा अर्को देशको मुद्रासँग साट्ने प्रक्रियालाई मुद्रा विनिमय भनिन्छ।)

Buying Rate

The rate at which a commercial bank or central bank buys foreign currency from a customer.

(बैंक वा वित्तीय संस्थाले ग्राहकसँग विदेशी मुद्रा खरिद गर्दा वा लिँदा प्रयोग गर्ने दर।)

Selling Rate

The rate at which a commercial bank or central bank sells foreign currency to a customer.

(बैंक वा वित्तीय संस्थाले ग्राहकलाई विदेशी मुद्रा बिक्री गर्दा वा दिँदा प्रयोग गर्ने दर।)

Note: Always Bank Selling Rate > Bank Buying Rate.

Section 2: Major Currency Symbols & Countries

Country / Region	Currency Name	Currency Code & Symbol
Nepal	Nepalese Rupee	NPR (Rs.)
India	Indian Rupee	INR (₹)
United States	US Dollar	USD ($)
European Union	Euro	EUR (€)
United Kingdom	Pound Sterling	GBP (£)
Japan	Japanese Yen	JPY (¥)
Switzerland	Swiss Franc	CHF (CHF)
Australia	Australian Dollar	AUD ($)
Canada	Canadian Dollar	CAD ($)
South Korea	South Korean Won	KRW (₩)

Note: Exchange rate is determined and published by Nepal Rastra Bank (NRB).

Section 3: Basic Rules & Conversion Formulas

2. Decision Flowchart: When to apply Buying Rate vs Selling Rate?

A) Bank’s Direct Perspective

(कन्डिसन १: बैंकको दृष्टिकोणबाट)

When Bank Buys Foreign Currency (बैंकले विदेशी मुद्रा किन्दा)

Foreign Currency (USD, GBP, AUD) Nepali Rupees (NPR)

Apply: Bank’s BUYING RATE

When Bank Sells Foreign Currency (बैंकले विदेशी मुद्रा बेच्दा)

Nepali Rupees (NPR) Foreign Currency (USD, GBP, AUD)

Apply: Bank’s SELLING RATE

B) When a Person Comes from Abroad to Nepal

(कन्डिसन २: जब कुनै व्यक्ति विदेशबाट नेपाल आउँछन्)

Tourist or Returning Nepalese converting Foreign Currency to NPR

(विदेशी मुद्रा दिएर नेपाली रुपैयाँ साट्दा)

Foreign Currency (USD, EUR, etc.) Nepali Rupees (NPR)

Bank applies: BUYING RATE

C) When People from Nepal Go Abroad

(कन्डिसन ३: जब नेपालबाट व्यक्ति विदेश जान्छन्)

1. Buying Foreign Currency (For travel / study) (भ्रमण वा अध्ययनका लागि विदेशी मुद्रा किन्दा)

Nepali Rupees (NPR) Foreign Currency (USD, CAD, GBP)

Apply: Bank’s SELLING RATE

2. Returning Foreign Currency (Cancelled trip or leftover money) (भ्रमण रद्द भएमा वा बाँकी विदेशी मुद्रा साट्दा)

Foreign Currency (USD, CAD, GBP) Nepali Rupees (NPR)

Apply: Bank’s BUYING RATE

3. Devaluation & Revaluation Rate Formulas

Devaluation of NPR (नेपाली रुपैयाँको अवमूल्यन हुँदा)

When Nepalese currency loses value against foreign currency. More NPR is required for 1 unit of foreign currency.

When NPR is devalued by $d\%$:

\[ \mathbf{\text{New Exchange Rate} = \left(\frac{100 + d}{100}\right) \times \text{Previous Exchange Rate}} \]

Revaluation of NPR (नेपाली रुपैयाँको अधिमूल्यन हुँदा)

When Nepalese currency gains value against foreign currency. Less NPR is required for 1 unit of foreign currency.

When NPR is revalued by $r\%$:

\[ \mathbf{\text{New Exchange Rate} = \left(\frac{100 – r}{100}\right) \times \text{Previous Exchange Rate}} \]

4. Bank Commission, Profit & Loss Formulas

Bank Commission Formulas (बैंक कमिसनसम्बन्धी सूत्रहरू)

1. Commission Amount:

\[ \text{Commission Amount} = \text{Net Base Amount} \times \left(\frac{\text{Commission } \%}{100}\right) \]

2. Total Amount Required to Pay (When Buying Foreign Currency):

\[ \mathbf{\text{Total Amount Required} = \text{Net Base Amount} + \text{Commission Amount}} \]

3. Return Amount Received (When Exchanging Foreign Currency back):

\[ \mathbf{\text{Return Amount Received} = \text{Net Base Amount} – \text{Commission Amount}} \]

Bank Profit & Person Loss (बैंकको नाफा र व्यक्तिको नोक्सान)

1. Bank’s Profit (While Buying & Selling Foreign Currency):

\[ \mathbf{\text{Bank’s Profit} = \text{Foreign Currency Amount} \times (\text{Bank Selling Rate} – \text{Bank Buying Rate})} \]

2. Person’s Loss (When buying & selling back due to cancelled trip on same rate):

\[ \mathbf{\text{Person’s Loss} = \text{Foreign Currency Amount} \times (\text{Bank Selling Rate} – \text{Bank Buying Rate})} \]

Filter Group:

SEE Board Questions Collection (Questions 1 – 26)

Complete English Medium Board Exam Questions with Step-by-Step Solutions

(सबै २६ वटा परीक्षाका प्रश्नहरू तथा सुत्रसहितका विस्तृत समाधानहरू)

Question 1 [2082 SEE – KOP]

The exchange rate published by Nepal Rastra Bank on dated 2082/08/05 states the buying and selling rate for American dollar ($\text{USD } 1$) were $\text{NPR } 141.64$ and $\text{NPR } 142.24$ respectively.

(a) Which rate will the bank use to exchange Nepalese rupees into American dollar? Write it. [1K]
(b) How much American dollar ($\text{USD}$) can be exchanged with $\text{NPR } 7,96,544$? Find it. [1U]
(c) If the Nepali rupees is devaluated by $0.3\%$ after some time, what is the profit or loss made when the US dollar exchanged back in Nepali rupees? Find it. [2HA]

Step-by-Step Solution:

Given:

Bank Selling Rate for $\text{USD } 1 = \text{NPR } 142.24$

Bank Buying Rate for $\text{USD } 1 = \text{NPR } 141.64$

(a) Rate used to convert NPR to USD:

Formula / Rule Used:

When converting NPR to foreign currency, Bank sells foreign currency Apply Bank Selling Rate.

Bank uses Selling Rate ($\text{NPR } 142.24$).

(b) USD Obtained from $\text{NPR } 7,96,544$:

Formula Used: \[ \text{Foreign Currency Amount (USD)} = \frac{\text{Amount in NPR}}{\text{Bank Selling Rate}} \]

\[ \begin{aligned} \text{Amount in USD} &= \frac{7,96,544}{142.24} = \mathbf{\text{USD } 5,600} \end{aligned} \]

Formulas Used: \[ 1.\; \text{Devaluated Buying Rate} = \text{Initial Buying Rate} \times \left(\frac{100 + d}{100}\right) \] \[ 2.\; \text{Loss Amount} = \text{Initial NPR Spent} – \text{NPR Received Back} \]

\[ \begin{aligned} \text{Devaluated Buying Rate} &= 141.64 \times \left(\frac{100 + 0.3}{100}\right) = 141.64 \times 1.003 = \text{NPR } 142.06492 \\[4pt] \text{NPR Received Back} &= 5,600 \times 142.06492 = \text{NPR } 7,95,563.55 \\[4pt] \text{Loss Amount} &= 7,96,544 – 7,95,563.55 = \mathbf{\text{NPR } 980.45} \end{aligned} \]

Question 2 [2082 SEE – MP]

According to money exchange rate, the buying rate and selling rate of 1 American dollar was $\text{NPR } 132.57$ and $\text{NPR } 133.17$ respectively on a day.

(a) How much Nepali rupees is needed to exchange 500 American dollars? Find it. [1U]
(b) If the Nepalese currency is devaluated by $0.5\%$, what will be the new buying rate? Find it. [1A]
(c) How much less or more Nepalese rupees is required to exchange 500 dollars after devaluation than before? Find it. [2HA]

Step-by-Step Solution:

(a) Required NPR to buy $\text{USD } 500$:

Formula Used: \[ \text{Required NPR} = \text{USD Amount} \times \text{Bank Selling Rate} \]

\[ \begin{aligned} \text{Required NPR} &= 500 \times 133.17 = \mathbf{\text{NPR } 66,585} \end{aligned} \]

(b) New Buying Rate after $0.5\%$ Devaluation:

Formula Used: \[ \text{New Buying Rate} = \text{Initial Buying Rate} \times \left(\frac{100 + d}{100}\right) \]

\[ \begin{aligned} \text{New Buying Rate} &= 132.57 \times \left(\frac{100 + 0.5}{100}\right) = 132.57 \times 1.005 = \mathbf{\text{NPR } 133.23} \end{aligned} \]

Formula Used: \[ \text{Difference} = \text{New Required NPR} – \text{Initial Required NPR} \]

\[ \begin{aligned} \text{New Selling Rate} &= 133.17 \times 1.005 = \text{NPR } 133.83585 \\[4pt] \text{New NPR Required} &= 500 \times 133.83585 = \text{NPR } 66,917.93 \\[4pt] \text{Difference} &= 66,917.93 – 66,585 = \mathbf{\text{NPR } 332.93 \text{ more}} \end{aligned} \]

Question 3 [2082 SEE – BP]

According to the exchange rate of Nepal Rastra Bank on dated 11/25/2025, buying rate and selling rate of $\text{USD } 1$ were $\text{NPR } 142.48$ and $\text{NPR } 143.08$ respectively.

(a) Among buying rate and selling rate, which rate is used while exchanging US dollar into Nepalese rupees? Write it. [1K]
(b) How many Nepalese rupees can an American tourist get while exchanging $\text{USD } 3,000$? Find it. [1U]
(c) If the tourist converts remaining $\text{USD } 500$ back after $1\%$ revaluation of NPR, how much NPR does he get? [2HA]

Question 4 [2082 SEE – SP]

Exchange rate published by bank states $\text{GBP } 1 = \text{NPR } 168.50$. A trader exchanges $\text{NPR } 5,05,500$ to Pound Sterling ($\text{GBP}$).

(a) How many Pound Sterling ($\text{GBP}$) will he receive? Find it. [1U]
(b) If NPR is devaluated by $1.5\%$, what will be the new exchange rate? Find it. [1A]
(c) Find the gain or loss in NPR if he exchanges $\text{GBP } 3,000$ back into NPR after devaluation. [2HA]

Step-by-Step Solution:

(a) GBP obtained:

Formula Used: \[ \text{GBP Amount} = \frac{\text{Amount in NPR}}{\text{Exchange Rate}} \]

\[ \begin{aligned} \text{GBP Amount} &= \frac{5,05,500}{168.50} = \mathbf{\text{GBP } 3,000} \end{aligned} \]

(b) Devaluated Exchange Rate ($1.5\%$):

Formula Used: \[ \text{Devaluated Rate} = \text{Initial Rate} \times \left(\frac{100 + d}{100}\right) \]

\[ \begin{aligned} \text{Devaluated Rate} &= 168.50 \times 1.015 = \mathbf{\text{NPR } 171.0275 \text{ per GBP } 1} \end{aligned} \]

Formula Used: \[ \text{Gain Amount} = \text{NPR Received Back} – \text{Initial NPR Spent} \]

\[ \begin{aligned} \text{NPR Received Back} &= 3000 \times 171.0275 = \text{NPR } 5,13,082.50 \\[4pt] \text{Gain Amount} &= 5,13,082.50 – 5,05,500 = \mathbf{\text{NPR } 7,582.50 \text{ Gain}} \end{aligned} \]

Question 5 [Important]

Exchange rate: Japanese Yen $\text{JPY } 10 = \text{NPR } 9.20$.

(a) How many NPR is required to buy $\text{JPY } 1,00,000$? Find it. [1U]
(b) How many JPY can be bought with $\text{NPR } 1,84,000$? Find it. [1A]
(c) If bank charges $1\%$ service commission, what is the total NPR required to buy $\text{JPY } 1,00,000$? Find it. [2A]

Step-by-Step Solution:

(a) NPR required for $\text{JPY } 1,00,000$:

Formula Used: \[ \text{Rate per JPY } 1 = \frac{9.20}{10} = \text{NPR } 0.92 \] \[ \text{NPR Required} = \text{JPY Amount} \times \text{Rate per JPY } 1 \]

\[ \begin{aligned} \text{NPR Required} &= 1,00,000 \times 0.92 = \mathbf{\text{NPR } 92,000} \end{aligned} \]

(b) JPY obtained for $\text{NPR } 1,84,000$:

Formula Used: \[ \text{JPY Amount} = \frac{\text{Amount in NPR}}{\text{Rate per JPY } 1} \]

\[ \begin{aligned} \text{JPY Amount} &= \frac{1,84,000}{0.92} = \mathbf{\text{JPY } 2,00,000} \end{aligned} \]

Formulas Used: \[ 1.\; \text{Commission Amount} = \text{Base Cost} \times \left(\frac{1}{100}\right) \] \[ 2.\; \text{Total NPR} = \text{Base Cost} + \text{Commission Amount} \]

\[ \begin{aligned} \text{Base Cost} &= \text{NPR } 92,000 \\[4pt] \text{Commission Amount} &= 1\% \text{ of } 92,000 = \text{NPR } 920 \\[4pt] \text{Total NPR Required} &= 92,000 + 920 = \mathbf{\text{NPR } 92,920} \end{aligned} \]

Question 6 [Important]

Exchange rate: $\text{EUR } 1 = \text{NPR } 145.20$.

(a) How many Euros ($\text{EUR}$) can be exchanged with $\text{NPR } 4,35,600$? Find it. [1U]
(b) If NPR is revaluated by $2\%$ against Euro, what will be the new exchange rate? Find it. [1A]
(c) How much less NPR is required to buy $\text{EUR } 3,000$ after revaluation? Find it. [2HA]

Step-by-Step Solution:

(a) EUR obtained:

Formula Used: \[ \text{EUR Amount} = \frac{\text{Amount in NPR}}{\text{Exchange Rate}} \]

\[ \begin{aligned} \text{EUR Amount} &= \frac{4,35,600}{145.20} = \mathbf{\text{EUR } 3,000} \end{aligned} \]

(b) Revaluated Rate ($2\%$):

Formula Used: \[ \text{Revaluated Rate} = \text{Initial Rate} \times \left(\frac{100 – r}{100}\right) \]

\[ \begin{aligned} \text{Revaluated Rate} &= 145.20 \times \left(\frac{100 – 2}{100}\right) = 145.20 \times 0.98 = \mathbf{\text{NPR } 142.296 \text{ per EUR } 1} \end{aligned} \]

Formula Used: \[ \text{Savings Amount} = \text{Initial Cost} – \text{Revaluated Cost} \]

\[ \begin{aligned} \text{Revaluated Cost} &= 3000 \times 142.296 = \text{NPR } 4,26,888 \\[4pt] \text{Savings Amount} &= 4,35,600 – 4,26,888 = \mathbf{\text{NPR } 8,712 \text{ less}} \end{aligned} \]

Question 7 [SEE 2081 KaP]

According to currency exchange rate of Nepal Rastra Bank, $\text{USD } 1 = \text{NPR } 138.83$ in a day. Nepali currency was devaluated by $2\%$ in comparison of dollar after some days.

(a) What is called currency exchange? Write it. [1K]
(b) How many Nepali rupees can be exchanged with $\text{USD } 1500$ before devaluation? Find it. [1A]
(c) After devaluation, how many American dollars can be exchanged with $\text{NPR } 7,08,033$? Find it. [2A]

Question 8 [SEE 2081 SP]

Exchange rate: Australian Dollar $\text{AUD } 1 = \text{NPR } 88.40$.

(a) How many AUD can be exchanged with $\text{NPR } 4,42,000$? Find it. [1U]
(b) If NPR is devaluated by $2.5\%$, what will be the new exchange rate? Find it. [1A]
(c) How much more NPR is required to buy $\text{AUD } 5,000$ after devaluation? Find it. [2HA]

Step-by-Step Solution:

(a) AUD obtained:

Formula Used: \[ \text{AUD Amount} = \frac{\text{Amount in NPR}}{\text{Exchange Rate}} \]

\[ \begin{aligned} \text{AUD Amount} &= \frac{4,42,000}{88.40} = \mathbf{\text{AUD } 5,000} \end{aligned} \]

(b) Devaluated Exchange Rate ($2.5\%$):

Formula Used: \[ \text{Devaluated Rate} = \text{Initial Rate} \times \left(\frac{100 + d}{100}\right) \]

\[ \begin{aligned} \text{Devaluated Rate} &= 88.40 \times 1.025 = \mathbf{\text{NPR } 90.61 \text{ per AUD } 1} \end{aligned} \]

Formula Used: \[ \text{Extra NPR} = \text{AUD Amount} \times (\text{Devaluated Rate} – \text{Initial Rate}) \]

\[ \begin{aligned} \text{Extra NPR} &= 5000 \times (90.61 – 88.40) = 5000 \times 2.21 = \mathbf{\text{NPR } 11,050 \text{ more}} \end{aligned} \]

Question 9 [SEE 2081 KOP]

Exchange rate: Indian Rupee $\text{INR } 100 = \text{NPR } 160.00$.

(a) Define buying rate of a bank. [1K]
(b) How many NPR is required to buy $\text{INR } 85,000$? Find it. [1U]
(c) If bank charges $0.5\%$ service charge, total NPR required to buy $\text{INR } 1,00,000$? Find it. [2A]

Step-by-Step Solution:

(a) Definition:

Buying rate is the exchange rate at which a bank purchases foreign currency from a customer.

(b) NPR for $\text{INR } 85,000$:

Formula Used: \[ \text{Rate per INR } 1 = \frac{160}{100} = \text{NPR } 1.60 \] \[ \text{NPR Required} = \text{INR Amount} \times 1.60 \]

\[ \begin{aligned} \text{NPR Required} &= 85,000 \times 1.60 = \mathbf{\text{NPR } 1,36,000} \end{aligned} \]

Formulas Used: \[ 1.\; \text{Base Cost} = 1,00,000 \times 1.60 = \text{NPR } 1,60,000 \] \[ 2.\; \text{Service Charge} = 1,60,000 \times \left(\frac{0.5}{100}\right) \]

\[ \begin{aligned} \text{Base Cost} &= \text{NPR } 1,60,000 \\[4pt] \text{Service Charge} &= 0.5\% \text{ of } 1,60,000 = \text{NPR } 800 \\[4pt] \text{Total NPR Required} &= 1,60,000 + 800 = \mathbf{\text{NPR } 1,60,800} \end{aligned} \]

Question 10 [SEE 2081 MP]

On a given day, bank rates for $\text{USD } 1$ were Buying = $\text{NPR } 131.50$ and Selling = $\text{NPR } 132.10$.

(a) Which rate is applied when a student buys USD from a bank for abroad travel? [1K]
(b) How much NPR does the student need to buy $\text{USD } 2,500$? Find it. [1U]
(c) If the trip is cancelled and the student exchanges $\text{USD } 2,500$ back on the same day, calculate the loss amount. [2A]

Question 11 [SEE 2081 BP]

Exchange rate: Canadian Dollar $\text{CAD } 1 = \text{NPR } 96.80$.

(a) How many CAD can be exchanged with $\text{NPR } 2,90,400$? Find it. [1U]
(b) What is the new exchange rate if NPR is devaluated by $3\%$? [1A]
(c) How much extra NPR is required to buy $\text{CAD } 4,000$ after devaluation? Find it. [2HA]

Step-by-Step Solution:

(a) CAD obtained:

Formula Used: \[ \text{CAD Amount} = \frac{\text{Amount in NPR}}{\text{Exchange Rate}} \]

\[ \begin{aligned} \text{CAD Amount} &= \frac{2,90,400}{96.80} = \mathbf{\text{CAD } 3,000} \end{aligned} \]

(b) Devaluated Rate ($3\%$):

Formula Used: \[ \text{Devaluated Rate} = \text{Initial Rate} \times \left(\frac{100 + 3}{100}\right) \]

\[ \begin{aligned} \text{Devaluated Rate} &= 96.80 \times 1.03 = \mathbf{\text{NPR } 99.704 \text{ per CAD } 1} \end{aligned} \]

Formula Used: \[ \text{Extra NPR} = \text{CAD Amount} \times (\text{Devaluated Rate} – \text{Initial Rate}) \]

\[ \begin{aligned} \text{Extra NPR} &= 4000 \times (99.704 – 96.80) = 4000 \times 2.904 = \mathbf{\text{NPR } 11,616 \text{ more}} \end{aligned} \]

Question 12 [SEE 2081 GP]

Exchange rate: Swiss Franc $\text{CHF } 1 = \text{NPR } 148.00$.

(a) How many CHF can be exchanged with $\text{NPR } 4,44,000$? Find it. [1U]
(b) If NPR is revaluated by $1.5\%$, what will be the new exchange rate? [1A]
(c) Find the difference in NPR required to buy $\text{CHF } 2,000$ before and after revaluation. [2HA]

Step-by-Step Solution:

(a) CHF obtained:

Formula Used: \[ \text{CHF Amount} = \frac{\text{Amount in NPR}}{\text{Exchange Rate}} \]

\[ \begin{aligned} \text{CHF Amount} &= \frac{4,44,000}{148.00} = \mathbf{\text{CHF } 3,000} \end{aligned} \]

(b) Revaluated Rate ($1.5\%$):

Formula Used: \[ \text{Revaluated Rate} = \text{Initial Rate} \times \left(\frac{100 – r}{100}\right) \]

\[ \begin{aligned} \text{Revaluated Rate} &= 148.00 \times 0.985 = \mathbf{\text{NPR } 145.78 \text{ per CHF } 1} \end{aligned} \]

Formula Used: \[ \text{Difference} = \text{CHF Amount} \times (\text{Initial Rate} – \text{Revaluated Rate}) \]

\[ \begin{aligned} \text{Difference} &= 2000 \times (148.00 – 145.78) = 2000 \times 2.22 = \mathbf{\text{NPR } 4,440 \text{ less}} \end{aligned} \]

Question 13 [NEB 2080 MB]

A merchant exchanged $\text{NPR } 7,06,062$ with pound sterling ($\text{GBP}$) at the rate of $\text{GBP } 1 = \text{NPR } 168.11$. After one week, Nepali rupees is devaluated by $2\%$.

(a) What amount of Pound Sterling ($\text{GBP}$) does the merchant exchange with the Nepali rupees he had? Find it. [1U]
(b) What would be the new exchange rate after $2\%$ devaluation of Nepali rupees? Find it. [2A]
(c) How much rupees will the merchant gain or lose when he exchanged Pound Sterling into Nepali rupees at the time of devaluation? Find it. [1HA]

Step-by-Step Solution:

(a) Initial GBP obtained:

Formula Used: \[ \text{GBP Amount} = \frac{\text{Amount in NPR}}{\text{Exchange Rate}} \]

\[ \begin{aligned} \text{GBP Amount} &= \frac{7,06,062}{168.11} = \mathbf{\text{GBP } 4,200} \end{aligned} \]

(b) Devaluated Exchange Rate ($2\%$):

Formula Used: \[ \text{Devaluated Rate} = \text{Initial Rate} \times \left(\frac{100 + d}{100}\right) \]

\[ \begin{aligned} \text{Devaluated Rate} &= 168.11 \times 1.02 = \mathbf{\text{NPR } 171.4722 \text{ per GBP } 1} \end{aligned} \]

Formula Used: \[ \text{Gain Amount} = \text{NPR Received Back} – \text{Initial NPR Spent} \]

\[ \begin{aligned} \text{NPR Received Back} &= 4200 \times 171.4722 = \text{NPR } 7,20,183.24 \\[4pt] \text{Gain Amount} &= 7,20,183.24 – 7,06,062 = \mathbf{\text{NPR } 14,121.24 \text{ Gain}} \end{aligned} \]

Question 14 [SEE 2080 KoP]

Chetnath exchanged American dollar for $\text{NPR } 10,00,000$ to go to America for study. On that day, buying rate and selling rate of $\text{USD } 1$ were $\text{NPR } 132.84$ and $\text{NPR } 133.55$ respectively.

(a) How many American dollars can he exchange with $\text{NPR } 10,00,000$? Find it. [1U]
(b) Due to family problems, he cancelled trip and exchanged dollars back into NPR after a week when NPR devaluated by $5\%$. How much NPR did he get? Find it. [2A]
(c) Write the reason of gain or loss in exchanging Nepalese rupees. [1HA]

Step-by-Step Solution:

(a) USD exchanged initially (Selling Rate = $\text{NPR } 133.55$):

Formula Used: \[ \text{USD Amount} = \frac{\text{Amount in NPR}}{\text{Bank Selling Rate}} \]

\[ \begin{aligned} \text{USD Amount} &= \frac{10,00,000}{133.55} = \mathbf{\text{USD } 7,487.83} \end{aligned} \]

(b) NPR received after $5\%$ devaluation (Buying Rate = $\text{NPR } 132.84$):

Formulas Used: \[ 1.\; \text{Devaluated Buying Rate} = \text{Initial Buying Rate} \times \left(\frac{100 + d}{100}\right) \] \[ 2.\; \text{NPR Received} = \text{USD Amount} \times \text{Devaluated Buying Rate} \]

\[ \begin{aligned} \text{Devaluated Buying Rate} &= 132.84 \times 1.05 = \text{NPR } 139.482 \\[4pt] \text{NPR Received} &= 7487.83 \times 139.482 = \mathbf{\text{NPR } 10,44,417.82} \end{aligned} \]

Chetnath gained $\text{NPR } 44,417.82$ because $5\%$ devaluation made foreign currency (USD) stronger against NPR.

Question 15 [SEE 2080 BP]

Exchange rate: $\text{USD } 1$ Buying = $\text{NPR } 132.90$, Selling = $\text{NPR } 133.50$.

(a) How many NPR could Prasiddi exchange with $\text{USD } 1000$? Find it. [1U]
(b) If Prasiddi needed $\text{USD } 5000$ and bank charged $2\%$ commission, how many NPR did she require? [2A]
(c) If NPR devaluated by $1.5\%$, find difference in NPR required to buy $\text{USD } 1000$. [2HA]

Step-by-Step Solution:

(a) NPR received for selling $\text{USD } 1000$ (Buying Rate = $\text{NPR } 132.90$):

Formula Used: \[ \text{NPR Received} = \text{USD Amount} \times \text{Bank Buying Rate} \]

\[ \begin{aligned} \text{NPR Received} &= 1000 \times 132.90 = \mathbf{\text{NPR } 1,32,900} \end{aligned} \]

(b) Total NPR for $\text{USD } 5000$ with $2\%$ commission (Selling Rate = $\text{NPR } 133.50$):

Formulas Used: \[ 1.\; \text{Base Cost} = \text{USD Amount} \times \text{Bank Selling Rate} \] \[ 2.\; \text{Commission Amount} = \text{Base Cost} \times \left(\frac{\text{Commission } \%}{100}\right) \] \[ 3.\; \text{Total Required} = \text{Base Cost} + \text{Commission Amount} \]

\[ \begin{aligned} \text{Base Cost} &= 5000 \times 133.50 = \text{NPR } 6,67,500 \\[4pt] \text{Commission Amount } (2\%) &= 2\% \text{ of } 6,67,500 = \text{NPR } 13,350 \\[4pt] \text{Total NPR Required} &= 6,67,500 + 13,350 = \mathbf{\text{NPR } 6,80,850} \end{aligned} \]

Formula Used: \[ \text{Difference} = \text{USD Amount} \times (\text{Devaluated Selling Rate} – \text{Initial Selling Rate}) \]

\[ \begin{aligned} \text{Devaluated Selling Rate} &= 133.50 \times 1.015 = \text{NPR } 135.5025 \\[4pt] \text{Difference for USD } 1000 &= 1000 \times (135.5025 – 133.50) = \mathbf{\text{NPR } 2,002.50 \text{ more}} \end{aligned} \]

Question 16 [SEE 2080 SP]

Exchange rate: $\text{EUR } 1 = \text{NPR } 142.50$.

(a) How many Euros ($\text{EUR}$) can be exchanged for $\text{NPR } 2,85,000$? Find it. [1U]
(b) What is the new exchange rate after $4\%$ devaluation of Nepalese Rupees? [1A]
(c) Calculate the profit gained in NPR when selling $\text{EUR } 2,000$ after devaluation. [2HA]

Step-by-Step Solution:

(a) EUR obtained:

Formula Used: \[ \text{EUR Amount} = \frac{\text{Amount in NPR}}{\text{Exchange Rate}} \]

\[ \begin{aligned} \text{EUR Amount} &= \frac{2,85,000}{142.50} = \mathbf{\text{EUR } 2,000} \end{aligned} \]

(b) Devaluated Rate ($4\%$):

Formula Used: \[ \text{Devaluated Rate} = \text{Initial Rate} \times \left(\frac{100 + 4}{100}\right) \]

\[ \begin{aligned} \text{Devaluated Rate} &= 142.50 \times 1.04 = \mathbf{\text{NPR } 148.20 \text{ per EUR } 1} \end{aligned} \]

Formula Used: \[ \text{Profit} = \text{EUR Amount} \times (\text{Devaluated Rate} – \text{Initial Rate}) \]

\[ \begin{aligned} \text{Profit} &= 2000 \times (148.20 – 142.50) = 2000 \times 5.70 = \mathbf{\text{NPR } 11,400 \text{ Profit}} \end{aligned} \]

Question 17 [SEE 2080 MP]

Exchange rate: $\text{AUD } 1$ Buying = $\text{NPR } 86.20$, Selling = $\text{NPR } 86.80$.

(a) How many NPR can a returning student receive for $\text{AUD } 1,500$? Find it. [1U]
(b) Total NPR required to buy $\text{AUD } 3,000$ including a $1.5\%$ bank commission? [2A]
(c) Loss to customer if trip cancelled and $\text{AUD } 3,000$ sold back same day? [1HA]

Step-by-Step Solution:

(a) NPR received for $\text{AUD } 1,500$:

Formula Used: \[ \text{NPR Received} = \text{AUD Amount} \times \text{Bank Buying Rate} \]

\[ \begin{aligned} \text{NPR Received} &= 1500 \times 86.20 = \mathbf{\text{NPR } 1,29,300} \end{aligned} \]

(b) Total NPR required for $\text{AUD } 3,000$ with $1.5\%$ Commission:

Formulas Used: \[ 1.\; \text{Base Cost} = 3000 \times 86.80 = \text{NPR } 2,60,400 \] \[ 2.\; \text{Commission} = 2,60,400 \times \left(\frac{1.5}{100}\right) \]

\[ \begin{aligned} \text{Base Cost} &= 3000 \times 86.80 = \text{NPR } 2,60,400 \\[4pt] \text{Commission Amount} &= 1.5\% \text{ of } 2,60,400 = \text{NPR } 3,906 \\[4pt] \text{Total NPR Required} &= 2,60,400 + 3,906 = \mathbf{\text{NPR } 2,64,306} \end{aligned} \]

Formula Used: \[ \text{Loss Amount} = \text{AUD Amount} \times (\text{Selling Rate} – \text{Buying Rate}) \]

\[ \begin{aligned} \text{Loss Amount} &= 3000 \times (86.80 – 86.20) = 3000 \times 0.60 = \mathbf{\text{NPR } 1,800 \text{ Loss}} \end{aligned} \]

Question 18 [SEE 2080 GP]

Exchange rate: $\text{USD } 1 = \text{NPR } 130.00$.

(a) What is meant by revaluation of currency? Write it. [1K]
(b) If Nepalese currency is revalued by $2\%$, find the new exchange rate. [1A]
(c) How much less NPR is required to buy $\text{USD } 4,000$ after revaluation? Find it. [2HA]

Question 19 [Model Question – Chain Rule]

If $\text{USD } 1 = \text{NPR } 133.00$ and $\text{GBP } 1 = \text{USD } 1.25$:

(a) State the chain rule formula used in compound currency exchange. [1K]
(b) How many Pound Sterling ($\text{GBP}$) can be exchanged for $\text{NPR } 6,65,000$? Find it. [2U]

Question 20 [Model Question – Double Currency]

Exchange rates: $\text{USD } 1 = \text{NPR } 132.00$ and $\text{EUR } 1 = \text{NPR } 144.00$.

(a) A traveler exchanges $\text{NPR } 3,96,000$ to USD. Find the USD obtained. [1U]
(b) Later, he converts all the USD into Euros ($\text{EUR}$). How many Euros will he receive? [2A]

Question 21 [Practice Question – Bank Profit]

A commercial bank has Buying Rate $\text{USD } 1 = \text{NPR } 134.00$ and Selling Rate $\text{USD } 1 = \text{NPR } 134.80$.

(a) Define the term “Rate Spread”. [1K]
(b) Calculate the profit made by the bank when it buys $\text{USD } 10,000$ from Tourist A and sells $\text{USD } 10,000$ to Student B on the same day. [2A]

Question 22 [Practice Question – Import & Devaluation]

A merchant imports machinery from USA worth $\text{USD } 20,000$. The initial exchange rate was $\text{USD } 1 = \text{NPR } 130.00$. Before payment, Nepalese Rupees devaluated by $3\%$.

(a) Find the initial amount in NPR required to pay for the machinery. [1U]
(b) Calculate the additional NPR required to settle the bill after $3\%$ devaluation. [2A]

Question 23 [Practice Question – Flat Fee & Commission]

Exchange rate: $\text{CAD } 1 = \text{NPR } 97.50$. A bank charges a $1\%$ commission plus a flat service fee of $\text{NPR } 500$ per transaction.

(a) Find the total NPR required to purchase $\text{CAD } 3,000$. [2A]

Question 24 [Practice Question – Compare Revaluation vs Devaluation]

Exchange rate: $\text{USD } 1 = \text{NPR } 135.00$.

(a) Find the NPR required for $\text{USD } 2,000$ if NPR devaluates by $4\%$. [1A]
(b) Find the NPR required for $\text{USD } 2,000$ if NPR revaluates by $4\%$. [1A]
(c) Calculate the difference in NPR required between the two situations. [2HA]

Question 25 [Practice Question – Tourist Expense & Return]

An American tourist comes to Nepal with $\text{USD } 4,000$. He exchanges all USD to NPR at Buying Rate $\text{USD } 1 = \text{NPR } 132.50$. During his stay, he spent $\text{NPR } 3,50,000$. He converts the remaining NPR back to USD at Bank Selling Rate $\text{USD } 1 = \text{NPR } 133.20$.

(a) How much NPR did he get initially? Find it. [1U]
(b) How much USD does he get back from his remaining NPR? Find it. [2A]

Question 26 [Master Comprehensive Problem]

A student going to Canada needs $\text{CAD } 5000$. If $\text{CAD } 1 = \text{NPR } 98.50$ and bank charges $2\%$ commission:

(a) Find the commission that the bank charges. [2U]
(b) If NPR is devaluated by $20\%$, how much NPR will be required? [2A]
(c) If NPR was revaluated by $10\%$, how much NPR would be required? In such situation, what is profit or loss to student? [2HA]

Step-by-Step Solution:

(a) Bank commission amount:

Formulas Used: \[ 1.\; \text{Base Cost} = \text{CAD Amount} \times \text{Exchange Rate} \] \[ 2.\; \text{Commission Amount} = \text{Base Cost} \times \left(\frac{2}{100}\right) \]

\[ \begin{aligned} \text{Base Cost for CAD } 5000 &= 5000 \times 98.50 = \text{NPR } 4,92,500 \\[4pt] \text{Commission } (2\%) &= 2\% \text{ of } 4,92,500 = \mathbf{\text{NPR } 9,850} \end{aligned} \]

(Total Initial Cost = $4,92,500 + 9,850 = \text{NPR } 5,02,350$)

(b) Total NPR required if NPR devaluated by $20\%$:

Formulas Used: \[ 1.\; \text{Devaluated Rate} = \text{Initial Rate} \times \left(\frac{100 + 20}{100}\right) \] \[ 2.\; \text{Total Required} = \text{New Base Cost} + \text{New Commission} \]

\[ \begin{aligned} \text{Devaluated Rate} &= 98.50 \times 1.20 = \text{NPR } 118.20 \text{ per CAD } 1 \\[4pt] \text{New Base Cost} &= 5000 \times 118.20 = \text{NPR } 5,91,000 \\[4pt] \text{New Commission } (2\%) &= 2\% \text{ of } 5,91,000 = \text{NPR } 11,820 \\[4pt] \text{Total NPR Required} &= 5,91,000 + 11,820 = \mathbf{\text{NPR } 6,02,820} \end{aligned} \]

Formulas Used: \[ 1.\; \text{Revaluated Rate} = \text{Initial Rate} \times \left(\frac{100 – 10}{100}\right) \] \[ 2.\; \text{Savings / Benefit} = \text{Initial Total Cost} – \text{Revaluated Total Cost} \]

\[ \begin{aligned} \text{Revaluated Rate} &= 98.50 \times 0.90 = \text{NPR } 88.65 \text{ per CAD } 1 \\[4pt] \text{Revaluated Base Cost} &= 5000 \times 88.65 = \text{NPR } 4,43,250 \\[4pt] \text{Commission } (2\%) &= 2\% \text{ of } 4,43,250 = \text{NPR } 8,865 \\[4pt] \text{Total NPR Required upon Revaluation} &= 4,43,250 + 8,865 = \mathbf{\text{NPR } 4,52,115} \end{aligned} \]

Benefit to Student: Savings compared to original cost = $5,02,350 – 4,52,115 = \mathbf{\text{NPR } 50,235 \text{ (Savings)}}$.

Concept Notes, Flowcharts & Essential Formulas

1. Basic Definitions & Concepts

Section 2: Major Currency Symbols & Countries

Note: Exchange rate is determined and published by Nepal Rastra Bank (NRB).

Section 3: Basic Rules & Conversion Formulas

2. Decision Flowchart: When to apply Buying Rate vs Selling Rate?

A) Bank’s Direct Perspective

B) When a Person Comes from Abroad to Nepal

C) When People from Nepal Go Abroad

3. Devaluation & Revaluation Rate Formulas

4. Bank Commission, Profit & Loss Formulas

SEE Board Questions Collection (Questions 1 – 26)

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Classroom Quiz Practice (10 Questions)