21 Currency Exchange A bank sells sterling at a rate of €1 = £0.82. Mark is travelling to London and wants to convert €900. How much sterling will he get?

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Presentation transcript:

21 Currency Exchange A bank sells sterling at a rate of €1 = £0.82. Mark is travelling to London and wants to convert €900. How much sterling will he get? Arrange the exchange rate to have the currency you are looking for on the right-hand side €1 = £0.82 €900 = £0.82 × 900 = £738 Ali returns from the USA and has $1,100. A bank buys dollars at a rate of €1 = $1.38. How much will he get in euro? Arrange the exchange rate to have the currency you are looking for on the right-hand side €1 = $1.38 $1.38 = €1 $1 = €1 ÷1.38 $1,100 = (€1 ÷1.38) × 1,100 = €797.10145 = €797.10

21 Currency Exchange If €1 = $1.42 (Australian dollar), €1 = ¥111.87 (Japanese yen) and €1 = £0.87: (a) How many Australian dollars would you get for €60? (b) How many Japanese yen would you get for €150? (c) How many pounds would you get for €50? (d) How many euro would you get for ¥67,122? (e) How many euro would you get for $106.50? (f) Are you better off if you have ¥44,748 or £347? (a) How many Australian dollars would you get for €60? €1 = $1.42 €60 = $1.42×60 €60 = $85.20 (b) How many Japanese yen would you get for €150? €1 = ¥111.87 €150 = ¥111.87 ×150 €150 = ¥16,780.50

21 Currency Exchange €1 = $1.42 (Australian dollar), €1 = ¥111.87 (Japanese yen) and €1 = £0.87: (c) How many pounds would you get for €50? €1 = £0.87 €50 = £0.87 ×50 €50 = £43.50 (d) How many euro would you get for ¥67,122? €1 = ¥111.87 ¥111.87 = €1 ¥1 = €1 ÷ 111.87 ¥67,122 = (€1 ÷ 111.87) ×67,122 ¥67,122 = €600 (e) How many euro would you get for $106.50? €1 = $1.42 $1.42 = €1 $1 = €1 ÷ 1.42 $106.50 = (€1 ÷ 1.42) ×106.50 $106.50 = €75

21 Currency Exchange €1 = $1.42 (Australian dollar), €1 = ¥111.87 (Japanese yen) and €1 = £0.87: (f) Are you better off if you have ¥44,748 or £347? Change both currencies into euro to compare them. €1 = ¥111.87 €1 = £0.87 ¥111.87 = €1 £0.87 = €1 ¥1 = €1 ÷ 111.87 £1 = €1÷ 0.87 ¥44,748 = (€1 ÷ 111.87) ×44,748 £347 = (€1÷ 0.87)×347 ¥44,748 = €400 £347 = €398.85 You are better off by €1.15 if you have ¥44,748.