Kemi changes $480.30 into Naira when $1 = N1,638.65. Calculate the amount Kemi receives.
A. N687,862.82
B. N787,862.92
C. N787,043.60
D. N968,461.35
Answer (2)
Kemi exchanges $480.30 into Naira at an exchange rate of $1 = N1,638.65. After calculating, she receives N787,043.60, which matches option C. Therefore, the correct answer is C. N787,043.60.
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Multiply the amount in dollars by the exchange rate: $480.30
Calculate the product: 480.30 × 1638.65 = 787043.595
Round the result to two decimal places: 787043.595 ≈ 787043.60
The amount Kemi receives is N 787 , 043.60
Explanation
Understanding the Problem Kemi changes $480.30 into Naira, and we know that $1 is equivalent to N1,638.65. We need to calculate the total amount Kemi receives in Naira.
Setting up the Calculation To find the amount Kemi receives, we need to multiply the amount in dollars by the exchange rate. That is, we multiply $480.30 by N1,638.65.
Performing the Calculation Now, let's perform the multiplication: 480.30 × 1638.65 = 787043.595 . Therefore, Kemi receives N787,043.595.
Finding the Answer Rounding to two decimal places, we get N787,043.60. Comparing this to the given options, we see that option C matches our calculated amount.
Examples
Exchange rates are used daily when people travel or conduct international business. For example, if you were planning a trip from the United States to Nigeria, you would need to convert your dollars into Naira to spend money there. Understanding exchange rates helps you determine how much local currency you will receive for your money, allowing you to budget effectively for your trip. Similarly, businesses that import or export goods use exchange rates to calculate costs and profits in different currencies. This problem demonstrates a simple currency conversion, a fundamental skill in global finance and travel.
