n NISM Certifications
NSM General NISM
Medium

Mr. Balbir invested USD 8,000 at 73; investment grows to USD 9,000; total effective return in INR is 12%. What exchange rate did he get on repatriation?

Practice question from NISM Series I - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    69.0050

  2. B

    75.8840

  3. C

    71.5435

  4. 72.6755

    Correct answer

Why this is the answer

Initial INR = 8,000 × 73 = Rs 584,000, Total INR on repatriation = Rs 584,000 × (1 + 0.12) = Rs 654,080, Exchange rate = Rs 654,080 / 9,000 USD ≈ 72.6755

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