Supreme buys goods in Bangkok for 1000 Thai Baht.

Find the value of goods in NC when the exchange rates are:

- $3.08 = Rs. 1.5 Indian rupee
- 1000 Thai Baht = Rs. 500 Indian rupee



Answer :

To determine the value of goods in NC (Native Currency) when purchasing goods in Bangkok for Thai Baht 1000, we will follow these steps:

1. Convert Thai Baht to Indian Rupees:
- According to the exchange rate, 1000 Thai Baht equals Rs 500.

Therefore, the value of the goods in Indian Rupees (INR) is:
[tex]\[ 1000 \text{ Thai Baht} = 500 \text{ INR} \][/tex]

2. Convert Indian Rupees to Native Currency (NC):
- As per the given exchange rate: Rs 3.08 is equivalent to 1.5 NC.

First, we need to determine the rate of 1 INR to NC. We can find this by dividing the NC value by the INR value:
[tex]\[ \text{Exchange rate from INR to NC} = \frac{1.5 \text{ NC}}{3.08 \text{ INR}} \][/tex]

Simplifying the exchange rate:
[tex]\[ \text{Exchange rate from INR to NC} = \frac{1.5}{3.08} \][/tex]

3. Calculate the value in NC:
- Now, using the exchange rate, we convert the value of the goods in INR to NC:
[tex]\[ \text{Value in NC} = \text{Value in INR} \times \text{Exchange rate from INR to NC} \][/tex]
Substituting the values:
[tex]\[ \text{Value in NC} = 500 \text{ INR} \times \frac{1.5}{3.08} \][/tex]

Therefore, the value of goods in NC is approximately 1026.67 NC.

The step-by-step solution allows us to find that:
1. The value of goods in Indian Rupees (INR) is 500.0 INR.
2. The value of goods in Native Currency (NC) is 1026.67 NC.