Question

In: Economics

Ms. Mariam is a Doctor in Aster Hospital. On her vacation, with her family she went...

Ms. Mariam is a Doctor in Aster Hospital. On her vacation, with her family she went for a tour to Bahrain and Dubai with 4,000 Omani Rial. She wanted to visit Bahrain first; hence she converted the total amount into Bahraini Dinar. She visited Bahrain and stayed there for four days and spent 2,800 Bahraini Dinar. Then she visited Dubai with the balance amount. At the Dubai airport, she has converted the available Bahraini Dinar into UAE Dirham. She stayed in Dubai for three days, visited many places and spent 9,500 UAE Dirham. After enjoying the vacation, she came back to Oman with the balance amount of UAE Dirham and converted into Omani Rial. One Omani Rials = 0.98 Bahraini Dinar One UAE Dirham = 0.10 Bahraini Dinar Required:

A. How much Omani Rial did Ms. Mariam spend in Bahrain?

B. How much UAE Dirham left with Ms. Mariam when she came back to Oman

C. How much Omani Rial will Ms. Mariam get for the UAE Dirham left with her when she came back to Oman?

Solutions

Expert Solution

A. Amount spent in Bahrain = 2800 Bahraini Dinar

1Omani Rial = 0.98 Bahraini Dinar

or 2800 Bahraini DInar = 1/0.98 * 2800 Omani Rial = 2857 Omani Rial

B. 4000 Omani Rial = 4000 * 0.98 Bahraini Dinar = 3920 Bahraini Dinar

Spent in Bahrain = 2800 Bahraini Dinar

Bahraini Dinar Left = 3920 - 2800 =1120 Bahraini Dinar

0.1 Bahraini Dinar = 1 UAE Dirham

1120 Bahraini Dinar = 1/0.1 * 1120 UAE Dirham - 11200 UAE Dirham

UAE Dirham Spent in Dubai = 9500

UAE Dirham Left When coming back to Oman = 11200 - 9500 = 1700 UAE Dirham

C. 1 UAE Dirham = 0.1 Bahraini Dinar

0.98 Bahraini Dinar = 1 Omani Rial

0.1 Bahraini Dinar = 1/0.98 * 0.1 Omani Rial = 0.102 Omani Rial

So 1 UAE Dirham = 0.102 Omani Rial

UAE Dirham Left when coming back to Oman = 1700 = 1700 * 0.102 Omani Rial = 173.40 Omani Rial

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