8.1 Goal: TLW convert between currencies.

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Presentation transcript:

8.1 Goal: TLW convert between currencies. Topic 8 8.1 Goal: TLW convert between currencies.

Currency Conversion Think of as a rate. Two cakes cost $2.50. What is the cost of one cake? Two euros equal $2.50 , then what is the value of 1 euro?

Example In the year 2000 Elke was planning to go on holiday from Germany to Greece. She changed 2000 euros to Greek dracma (GRD) at a rate of 1 EUR = 340.75 GRD. Calculate how many dracma she received. Elke became ill. She had to cancel her holiday. She sold the drachma back to the bank at a rate of 1EUR = 347.82 GRD. How many euros did she receive? How much did the bank gain from the two transactions? Calculate Elke’s loss as a percentage of her original 2000 EUR.

Example Time Jin is travelling on business from Korea to Japan. The bank sells Japanese yen (JPY) at a rate of 1 Korean won (KRW) = 0.1219 JPY. A commission is charged at a rate of 2% in KRWW. Jin pays 1 million KRW. How much does she receive in JPY (to the nearest JPY)?

Another Zsolt travels from Budapest to London. He exchanges 300 000 forints (HUF) for British pounds before he leaves. The bank is selling GBP at a rate of 1 GBP = 411.78 HUF. Calculate how many GBP Zsolt receives. Zsolt spends 622.54 GBP in London. He has a choice for the remaining pounds. He can: Change all the money back to HUF in London. The rate is 1 GBP = 405.55 HUF but the bank charges commission of 1.6% or Wait and do the exchange at home at a rate of 1 GBP = 397.85 HUF. Calculate which option if better.

Assignment P. 384 #1-5