(13). A Kenyan bank buys and sells foreign currency as shown below:

\begin{tabular}{|l|l|l|}
\cline {2-3}
\multicolumn{1}{c|}{} & Buying Ksh & Selling Ksh \\
\hline
1 US dollar & 103.00 & 106.20 \\
\hline
\end{tabular}

\begin{tabular}{|l|l|l|}
\hline
& Buying Ksh & Selling Ksh \\
\hline
1 UK pound (\£) & 145.00 & 149.95 \\
\hline
\end{tabular}

A tourist arrived in Kenya with [tex]\[£ 9600\][/tex] which he converted into Kshs at a commission of 5%. He later used [tex]\[ \frac{3}{8} \][/tex] of the money before changing the balance to dollars at no commission.

Calculate, to the nearest dollar, the amount he received. (3 marks)



Answer :

Let's solve this step-by-step, taking into consideration the given constraints:

### Step 1: Convert £9600 into Kshs with a 5% commission
First, we need to find out how much Kshs the tourist would get from converting £9600 into Kenyan shillings (Kshs) at the given buying rate. The buying rate for 1 UK pound is Ksh 145.00.

[tex]\[ 9600 \, \text{pounds} \times 145 = 1392000 \, \text{Ksh} \][/tex]

Next, we calculate the commission amount. The commission rate is 5%, so the commission amount is:

[tex]\[ 1392000 \, \text{Ksh} \times 0.05 = 69600 \, \text{Ksh} \][/tex]

We subtract the commission amount from the total to get the amount in Kshs after the commission:

[tex]\[ 1392000 \, \text{Ksh} - 69600 \, \text{Ksh} = 1322400 \, \text{Ksh} \][/tex]

### Step 2: Tourist uses 3/8 of the money
The tourist used [tex]\(\frac{3}{8}\)[/tex] of the money. So, we need to find out how much he used:

[tex]\[ 1322400 \, \text{Ksh} \times \left(\frac{3}{8}\right) = 495900 \, \text{Ksh} \][/tex]

### Step 3: Calculate the remaining amount in Kshs
Subtract the used amount from the initial amount after commission to find the balance:

[tex]\[ 1322400 \, \text{Ksh} - 495900 \, \text{Ksh} = 826500 \, \text{Ksh} \][/tex]

### Step 4: Convert the balance in Kshs to dollars
Finally, we convert the remaining Kshs into dollars at the given selling rate, which is Ksh 149.95 for 1 UK pound. Since we're asked to find the amount in dollars, we'll use the selling rate for dollars:

[tex]\[ 826500 \, \text{Ksh} \div 149.95 = 5512.17 \, \text{dollars} \][/tex]

We round this amount to the nearest dollar:

[tex]\[ \approx 5512 \, \text{dollars} \][/tex]

Therefore, the amount he received in dollars is:
[tex]\[ \boxed{5512 \, \text{dollars}} \][/tex] to the nearest dollar.

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