3.1.1 A South African tourist is on his way to Italy. He goes to a foreign exchange bureau at OR Tambo International Airport. He has R50 500 to exchange for. Calculate how much he will receive in euro. 3.1.2 On his return to South Africa, the tourist goes to a foreign exchange bureau at OR Tambo International Airport and exchanges EUR200. Calculate how much he will receive in rand.

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3.1.1 A South African tourist is on his way to Italy - NSC Tourism - Question 3 - 2022

Question 3

3.1.1 A South African tourist is on his way to Italy. He goes to a foreign exchange bureau at OR Tambo International Airport. He has R50 500 to exchange for. Calcul... show full transcript

Worked Solution & Example Answer:3.1.1 A South African tourist is on his way to Italy - NSC Tourism - Question 3 - 2022

Step 1

Calculate how much he will receive in euro.

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Answer

To determine how much the tourist will receive in euros, we use the Buy Rate (BBR) from the exchange rate table.

i.e.,

Amount in ZAR = R50 500

Exchange Rate (BBR) = 17.88

The formula used is:

$ext{Amount in EUR} = \frac{\text{Amount in ZAR}}{\text{Exchange Rate}} = \frac{50,500}{17.88} = EUR 2,824.38$

Therefore, the tourist will receive EUR 2,824.38.

Step 2

Calculate how much he will receive in rand.

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Answer

To calculate how much he will receive in rand from exchanging EUR200, we use the Sell Rate (BSR).

i.e.,

Amount in EUR = EUR200

Exchange Rate (BSR) = 17.12

The formula used is:

$ext{Amount in ZAR} = \text{Amount in EUR} \times \text{Exchange Rate} = 200 \times 17.12 = ZAR 3,424.00$

Therefore, he will receive ZAR 3,424.00.

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