Converting between currencies
Before doing this section you should revise Converting between currencies in National 4 Lifeskills Maths.
Situations involving currency can have several stages of calculation. Some situations involve going abroad to one country and then coming home again. Others involve going abroad to one country then on to another country.
Example 1
Francesca lives in the UK and is going to visit friends in Italy. She brings \(\pounds300\) in spending money with her. (The exchange rate is \(\pounds1 = 1.50\;euros\)).
While in Italy she spends \(390\;euros\).
When she comes home to the UK she changes her remaining euros back into pounds at the same exchange rate.
Francesca uses the same exchange office each time and it does not charge commission.
Question
How much does she get back in pounds?
Answer
Amount of euros \( = 300 \times 1.50 = \euro450\)
She spends \(\euro390\)
Money remaining \(= 450 鈭 390 = \euro60\)
Amount of pounds \( = 60 \div 1.50 = \pounds40\)
Now try this question
Question
Emily goes to Germany from the UK. She brings \(\pounds200\) in euros. (The exchange rate is \(\pounds1 = \euro1.50\)).
While in Germany she spends \(207\,euros\).
When she comes home to the UK she changes her remaining euros back into pounds at the same exchange rate.
The exchange office Emily uses each time does not charge commission.
How much does she get back in pounds?
Amount of euros\( = 200 \times 1.50 = \euro300\)
She spends \(\euro207\)
Money remaining \(= 300 鈭 207 = \euro93 \)
Amount of pounds\( = 93 \div 1.50 = \pounds62 \)