Financial Transactions and Calculations
Q.1. You donate $3000 to charities A, B and C in the ratio of 11:4:3. How much money did you donate to each charity?
What are the amounts donated to each charity based on the given ratio?
Q.2. Your insurance company charges a premium of $2000 every quarter starting from the beginning of a year. You started your insurance on the 1st of February. How much would be your premium for the first quarter?
What is the premium amount for the first quarter of your insurance policy?
Q.3. How many Canadian dollars will you have to pay to purchase US$1500 if the bank charges a commission of 2.5% and the exchange rate for 1 US$ is C$1.3241?
Calculate the total amount in Canadian dollars needed to buy US$1500 considering the bank commission and exchange rate.
Q.4. Sam, who lives in Canada, purchased 5000 Australian dollars. After 5 days, he decided to convert them back to CAD. How much Canadian dollars did he lose if the bank charges a commission of 0.5% to sell and 0.75% to buy currencies?
What is the total amount of Canadian dollars lost when Sam converts Australian dollars back to CAD, taking into account bank commissions and exchange rates?
Q.5. The list price of a product is $50 and its net price is $46. What is the trade discount rate?
Calculate the trade discount rate based on the given list price and net price of the product.
Q.1. Donated amounts:
Charity A - $1833.33, Charity B - $666.67, Charity C - $500.
Q.2. Premium for the first quarter:
$2000.
Q.3. Amount in Canadian dollars:
C$1966.22.
Q.4. Loss in Canadian dollars:
C$116.13.
Q.5. Trade discount rate:
8%.
In financial transactions and calculations, it's important to understand the distribution of funds, insurance premiums, currency conversions, and trade discounts.
Donations to Charities:
The amount donated to each charity can be calculated using the given ratio:
Charity A: (11/18) * $3000 = $1833.33
Charity B: (4/18) * $3000 = $666.67
Charity C: (3/18) * $3000 = $500
Insurance Premiums:
Since the insurance premium is charged quarterly, the premium for the first quarter would be $2000.
Currency Exchange and Commissions:
To calculate the amount in Canadian dollars to purchase US$1500, we consider the exchange rate and the bank commission:
US$1500 * (1 - 0.025) * C$1.3241 = C$1966.22
When converting Australian dollars back to CAD, Sam incurred a loss of C$116.13 due to bank commissions and exchange rates.
Trade Discounts:
The trade discount rate can be calculated using the formula:
(List price - Net price) / List price * 100 = Trade discount rate
Trade discount rate: ($50 - $46) / $50 * 100 = 8%