Exchange Rates Flashcards

All 6 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: $315.79 + 300 = £615.79$