Solution
Understanding the set :-
- Imagine a money exchange shop. This shop deals in three foreign currencies—let’s call them A, B, and C—and it only uses local currency L to buy and sell them.
So, if someone wants to exchange currency A for B, the shop will first convert A to L, then L to B. It doesn’t exchange A directly for B or C.
- Now, the shop has a standard value (called the base rate) for how much one unit of each currency is worth in L. For example:
a) 1 unit of A = 100 units of L
b) 1 unit of B = 120 units of L
c) 1 unit of C = 1 unit of L
(This is a ratio: 100 : 120 : 1)
3)But like any business, the shop buys cheap and sells expensive to make a profit:
It buys A, B, or C at 5% less than the base rate
It sells A, B, or C at 10% more than the base rate.
In this set, our task would be to find the number of units purchased or sold of any particular currency by the exchange shop.
| Currency | Buying rate | Base rate | Selling rate |
|---|---|---|---|
| A | |||
| B | |||
| C |
We know, The base exchange rates of A, B and C with respect to L are in the ratio 100:120:1.
Let us assume that base exchange rates are '100a', '120a' and 'a' in that order.
| Currency | Buying rate | Base rate | Selling rate |
|---|---|---|---|
| A | 95a | 100a | 110a |
| B | 114a | 120a | 132a |
| C | 0.95a | a | 1.1a |
Now, we are given that,
The buying exchange rates of each of A, B, and C with respect to L are 5% below the corresponding base exchange rates.
Therefore, we can say that the buying exchange rates are 95a, 114a, 0.95a.
Similarly, their selling exchange rates are 10% above their corresponding base exchange rates.
=> we can say that the selling exchange rates are 110a, 132a, 1.1a.
In currency transactions, getting the basic outline is very important.
So, if the base rate of A w.r.t to L is 100, then to buy one unit of A, we need 95 units of L and if we sell one unit of A, we will get 110 units of L.
| Currency | Buying rate | Base rate | Selling rate | Opening stock | Buy | Sell | Closing stock |
|---|---|---|---|---|---|---|---|
| A | 95a | 100a | 110a | 2500 | |||
| B | 114a | 120a | 132a | 4800 | |||
| C | 0.95a | a | 1.1a | 48000 |
Using clue 5,
The outlet started the day with some amount of L, 2500 units of A, 4800 units of B, and 48000 units of C.
This clue gives us the opening stock of all the currencies with the exchange shop.
| Currency | Buying rate | Base rate | Selling rate | Opening stock | Buy | Sell | Closing stock |
|---|---|---|---|---|---|---|---|
| A | 95a | 100a | 110a | 2500 | 3300 | ||
| B | 114a | 120a | 132a | 4800 | 4800 | ||
| C | 0.95a | a | 1.1a | 48000 | 51000 |
Using clue 6 ;
The outlet ended the day with some amount of L, 3300 units of A, 4800 units of B, and 51000 units of C.
This clue gives us the closing stock of all the currencies with the exchange shop.
| Currency | Buying rate | Base rate | Selling rate | Opening stock | Buy | Sell | Closing stock |
|---|---|---|---|---|---|---|---|
| A | 95a | 100a | 110a | 2500 | p | p - 800 | 3300 |
| B | 114a | 120a | 132a | 4800 | q | q | 4800 |
| C | 0.95a | a | 1.1a | 48000 | r | r - 3000 | 51000 |
Let 'p', 'q' and 'r' be the number of units of currency A, B and C bought by the outlet on that day.
=> Number of units sold of A = p - p -
and, number of units sold of B =
and, number of units sold of C =
| Currency | Buying rate | Base rate | Selling rate | Opening stock | Buy | Sell | Closing stock |
|---|---|---|---|---|---|---|---|
| A | 95a | 100a | 110a | 2500 | p | p - 800 | 3300 |
| B | 114a | 120a | 132a | 4800 | q | q | 4800 |
| C | 0.95a | a | 1.1a | 48000 | 22000 | 19000 | 51000 |
Clue 1 says,
The amount of L used by the outlet to buy C equals the amount of L it received by selling C.
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| Currency | Buying rate | Base rate | Selling rate | Opening stock | Buy | Sell | Closing stock |
|---|---|---|---|---|---|---|---|
| A | 95a | 100a | 110a | 2500 | p | p - 800 | 3300 |
| B | 114a | 120a | 132a | 4800 | 600 | 600 | 4800 |
| C | 0.95a | a | 1.1a | 48000 | 22000 | 19000 | 51000 |
Clue 3 says,
The amounts of L the outlet received from the sales of A and B are in the ratio 5:9.
=>
=>
=>
| Currency | Buying rate | Base rate | Selling rate | Opening stock | Buy | Sell | Closing stock |
|---|---|---|---|---|---|---|---|
| A | 95a | 100a | 110a | 2500 | 1200 | 400 | 3300 |
| B | 114a | 120a | 132a | 4800 | 600 | 600 | 4800 |
| C | 0.95a | a | 1.1a | 48000 | 22000 | 19000 | 51000 |
Clue 2 says,
The amounts of L used by the outlet to buy A and B are in the ratio 5:3.
=>
=>
=>
=>
| Currency | Buying rate | Base rate | Selling rate | Opening stock | Buy | Sell | Closing stock |
|---|---|---|---|---|---|---|---|
| A | 190 | 200 | 220 | 2500 | 1200 | 400 | 3300 |
| B | 228 | 240 | 264 | 4800 | 600 | 600 | 4800 |
| C | 1.9 | 2 | 2.2 | 48000 | 22000 | 19000 | 51000 |
Clue 4 says,
The outlet received 88000 units of L by selling A during the day.
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⇒
⇒
⇒
| Currency | Buying rate | Base rate | Selling rate | Opening stock | Buy | Sell | Closing stock |
|---|---|---|---|---|---|---|---|
| A | 190 | 200 | 220 | 2500 | 1200 | 400 | 3300 |
| B | 228 | 240 | 264 | 4800 | 600 | 600 | 4800 |
| C | 1.9 | 2 | 2.2 | 48000 | 22000 | 19000 | 51000 |
As net addition is 800, the units of A bought is 1200