Exchange Rates & Best Buys Flashcards

All 11 cards in this deck

How do you convert an amount in pounds into a foreign currency using a given exchange rate?

e.g. change £200 into euros when £1 = 1.15 euros

Multiply the pounds by the exchange rate.
$200 \times 1.15 = 230$ euros

How do you convert an amount of foreign currency back into pounds using a given exchange rate?

e.g. change 460 euros into pounds when £1 = 1.15 euros

Divide the foreign amount by the exchange rate.
$460 \div 1.15 = £400$

What are the steps to find the greatest number of notes of one denomination you can get for an amount in pounds?

e.g. £500 into rand as 200 rand notes, £1 = 18.5 rand

1. Convert to the foreign currency: $500 \times 18.5 = 9250$ rand
2. Divide by the value of one note: $9250 \div 200 = 46.25$
3. Round down to a whole number: 46 notes

True or false? When working out the greatest number of notes of a given value you can get, you round your answer up to the next whole number.

False. You round down — you cannot be given part of a note.

An exchange rate changes so that there are fewer dollars to £1. What happens to the cost in pounds of a holiday priced in dollars?

It rises.
Each £1 buys fewer dollars, so more pounds are needed.

What are the steps to find the total cost in pounds of a holiday with costs in two currencies?

e.g. flights £300, hotel $150 per night for 4 nights, £1 = $1.90

1. Total the costs in the foreign currency: $150 \times 4 = \$600$
2. Convert that total into pounds: $600 \div 1.90 = £315.79$
3. Add the costs already in pounds: $315.79 + 300 = £615.79$

What are the steps to decide which of two pack sizes is better value?

e.g. 400 g for £1.20 or 600 g for £1.68

1. Find the price per gram for each: $120 \div 400 = 0.3$p and $168 \div 600 = 0.28$p
2. Compare: the smaller price per gram is better value
3. State the answer with both figures: the 600 g pack (0.28p vs 0.3p per gram)

True or false? The larger pack is always the better value for money.

False. You must compare unit prices — the smaller pack can be cheaper per gram or per litre.

True or false? If you need 30 batteries and they come in packs of 4, you must round $30 \div 4$ up when working out the cost.

True. You can only buy whole packs, so 8 packs are needed.

What must you do first when comparing value for money where the quantities are in different units or different currencies?

Convert so both are in the same unit and the same currency, then compare unit prices.
e.g. change gallons to litres and $ to £ before comparing petrol prices

What are the steps to work out the unit price under a "buy one get one free" offer?

e.g. 500 ml bottles at £3 each, buy one get one free

1. Find the total quantity you take home: $2 \times 500 = 1000$ ml
2. Find the total price you actually pay: £3 (300p)
3. Divide price by quantity: $300 \div 1000 = 0.3$p per ml