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A Pakistani employee in Saudi Arabia earns 4200 Riyal a month. He spends 200 Riyals. Determine : (I) His monthly income in PK rupees if one Riyal is equal to 23 PKR. (2). He remits his savings to Pakistan after a year, when he remits, rate changes to One Riyal equal to 25 rupees. Determine increase in a saving rate.?
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A Pakistani employee in Saudi Arabia earns 4200 Riyal a month. He spen...
Monthly Income in PKR:
To determine the monthly income in PKR, we need to convert the Saudi Riyal (SAR) into PKR. Given that one Riyal is equal to 23 PKR, we can calculate the monthly income in PKR as follows:
Monthly income in PKR = Monthly income in SAR * Conversion rate
= 4200 Riyals * 23 PKR/Riyal
= 96600 PKR
Therefore, the monthly income in PKR is 96600 PKR.
Savings:
To calculate the savings, we need to subtract the monthly expenses from the monthly income. The employee spends 200 Riyals, which is equivalent to 200 * 23 = 4600 PKR.
Savings = Monthly income - Monthly expenses
= 96600 PKR - 4600 PKR
= 92000 PKR
Change in Remittance Rate:
After a year, when the employee remits his savings to Pakistan, the exchange rate changes to one Riyal equal to 25 PKR. This means that the employee will receive more PKR for the same amount of Riyals.
Increase in Savings Rate = (New exchange rate - Old exchange rate) * Savings
= (25 PKR/Riyal - 23 PKR/Riyal) * 92000 PKR
= 2 PKR/Riyal * 92000 PKR
= 184000 PKR
Therefore, there is an increase in the savings rate of 184000 PKR.
Explanation:
- The monthly income in PKR is calculated by multiplying the monthly income in SAR by the conversion rate of Riyal to PKR.
- The savings are calculated by subtracting the monthly expenses from the monthly income.
- The change in remittance rate is determined by subtracting the old exchange rate from the new exchange rate and then multiplying it by the savings.
- The increase in the savings rate represents the additional amount of PKR the employee will receive due to the change in the exchange rate.
- In this case, the employee's savings will increase by 184000 PKR when he remits his savings to Pakistan after a year.
To determine the monthly income in PKR, we need to convert the Saudi Riyal (SAR) into PKR. Given that one Riyal is equal to 23 PKR, we can calculate the monthly income in PKR as follows:
Monthly income in PKR = Monthly income in SAR * Conversion rate
= 4200 Riyals * 23 PKR/Riyal
= 96600 PKR
Therefore, the monthly income in PKR is 96600 PKR.
Savings:
To calculate the savings, we need to subtract the monthly expenses from the monthly income. The employee spends 200 Riyals, which is equivalent to 200 * 23 = 4600 PKR.
Savings = Monthly income - Monthly expenses
= 96600 PKR - 4600 PKR
= 92000 PKR
Change in Remittance Rate:
After a year, when the employee remits his savings to Pakistan, the exchange rate changes to one Riyal equal to 25 PKR. This means that the employee will receive more PKR for the same amount of Riyals.
Increase in Savings Rate = (New exchange rate - Old exchange rate) * Savings
= (25 PKR/Riyal - 23 PKR/Riyal) * 92000 PKR
= 2 PKR/Riyal * 92000 PKR
= 184000 PKR
Therefore, there is an increase in the savings rate of 184000 PKR.
Explanation:
- The monthly income in PKR is calculated by multiplying the monthly income in SAR by the conversion rate of Riyal to PKR.
- The savings are calculated by subtracting the monthly expenses from the monthly income.
- The change in remittance rate is determined by subtracting the old exchange rate from the new exchange rate and then multiplying it by the savings.
- The increase in the savings rate represents the additional amount of PKR the employee will receive due to the change in the exchange rate.
- In this case, the employee's savings will increase by 184000 PKR when he remits his savings to Pakistan after a year.
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A Pakistani employee in Saudi Arabia earns 4200 Riyal a month. He spends 200 Riyals. Determine : (I) His monthly income in PK rupees if one Riyal is equal to 23 PKR. (2). He remits his savings to Pakistan after a year, when he remits, rate changes to One Riyal equal to 25 rupees. Determine increase in a saving rate.?
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A Pakistani employee in Saudi Arabia earns 4200 Riyal a month. He spends 200 Riyals. Determine : (I) His monthly income in PK rupees if one Riyal is equal to 23 PKR. (2). He remits his savings to Pakistan after a year, when he remits, rate changes to One Riyal equal to 25 rupees. Determine increase in a saving rate.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A Pakistani employee in Saudi Arabia earns 4200 Riyal a month. He spends 200 Riyals. Determine : (I) His monthly income in PK rupees if one Riyal is equal to 23 PKR. (2). He remits his savings to Pakistan after a year, when he remits, rate changes to One Riyal equal to 25 rupees. Determine increase in a saving rate.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Pakistani employee in Saudi Arabia earns 4200 Riyal a month. He spends 200 Riyals. Determine : (I) His monthly income in PK rupees if one Riyal is equal to 23 PKR. (2). He remits his savings to Pakistan after a year, when he remits, rate changes to One Riyal equal to 25 rupees. Determine increase in a saving rate.?.
A Pakistani employee in Saudi Arabia earns 4200 Riyal a month. He spends 200 Riyals. Determine : (I) His monthly income in PK rupees if one Riyal is equal to 23 PKR. (2). He remits his savings to Pakistan after a year, when he remits, rate changes to One Riyal equal to 25 rupees. Determine increase in a saving rate.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A Pakistani employee in Saudi Arabia earns 4200 Riyal a month. He spends 200 Riyals. Determine : (I) His monthly income in PK rupees if one Riyal is equal to 23 PKR. (2). He remits his savings to Pakistan after a year, when he remits, rate changes to One Riyal equal to 25 rupees. Determine increase in a saving rate.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Pakistani employee in Saudi Arabia earns 4200 Riyal a month. He spends 200 Riyals. Determine : (I) His monthly income in PK rupees if one Riyal is equal to 23 PKR. (2). He remits his savings to Pakistan after a year, when he remits, rate changes to One Riyal equal to 25 rupees. Determine increase in a saving rate.?.
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