Question
You are planning a business trip that will take you to Nigeria, Kenya and South Africa. You have been advised to carry the equivalent of
You are planning a business trip that will take you to Nigeria, Kenya and South Africa. You have been advised to carry the equivalent of 4,000 in the currency of each of the countries to be visited. Your bank quotes the following spot rates: Kenyan shilling per cedi: KES 24.30 28.00 Nigerian naira per cedi: NGN 76.50 82.10 South Africa rand per cedi: ZAR 3.58 3.74 Your bank also commits to buy back any unused foreign currency after your trip, using the same quotes above. a) How many KES, NGN and ZAR would you have if you accept the quotes above b) If you return to Ghana with KES 12,000, NGN 10,000, and ZAR 3,000, how many cedis would you have if you decide to use your bank. c) A Nigerian you met in South Africa is offering to take your NGN 20,000 in exchange for ZAR 750. Should you accept this offer? If not, what NGN/ZAR rate would make you indifferent?
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