A South African visited the United Kingdom in 2015 and in 2016 - NSC Tourism - Question 3 - 2016 - Paper 1
Question 3
A South African visited the United Kingdom in 2015 and in 2016. He bought fish and chips from the menu below on both trips.
Compare the value of the rand on both tr... show full transcript
Worked Solution & Example Answer:A South African visited the United Kingdom in 2015 and in 2016 - NSC Tourism - Question 3 - 2016 - Paper 1
Step 1
3.1.1 (a) In 2015
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Answer
To calculate the cost of fish and chips in ZAR for 2015, use the exchange rate:
Cost in ZAR = £6.50 × R22.55
Calculating this gives:
extCostinZAR=6.50imes22.55=R146.58
Thus, the cost of fish and chips in 2015 is R146.58.
Step 2
3.1.1 (b) In 2016
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Answer
For 2016, using the exchange rate:
Cost in ZAR = £6.50 × R24.69
Calculating this gives:
extCostinZAR=6.50imes24.69=R160.49
Thus, the cost of fish and chips in 2016 is R160.49.
Step 3
3.1.2 State the year in which the tourist received the best value for his rand.
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Answer
The year in which the tourist received the best value for his rand is 2015. This is because the cost of fish and chips was lower in ZAR compared to 2016.
Step 4
3.2.1 Calculate how much he will receive in rand when he exchanges his foreign currency.
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Answer
To calculate how much Mr. Small will receive in rand for USD12 600, we use the BBR rate:
Amount in ZAR = USD12 600 × 10.20
Calculating this gives:
extAmountinZAR=12,600imes10.20=R128,520
Thus, Mr. Small will receive R128,520.
Step 5
3.2.2 Calculate the amount that he will receive in USD.
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To find out how much USD Mr. Small will receive for R2 750, we use the BSR rate:
