Exchange Rates (Cambridge (CIE) IGCSE Maths) : Revision Note

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Exchange Rates

Exchange rates are used to compare and convert between different currencies.

How do I convert between currencies?

  • Start by writing the exchange rate

    • £1.00 (GBP) = €1.17 (EUR)

  • To convert from GBP to EURmultiply by 1.17

    • Because 1.00 × 1.17 = 1.17

  • To convert from EUR to GBPdivide by 1.17

    • Because 1.17 ÷ 1.17 = 1.00

  • To find £28 in Euros

    • 28 × 1.17 = €32.76

  • To find €75 in Pounds

    • 75 ÷ 1.17 = £64.10 (to the nearest penny)

Worked Example

On a particular day, the exchange rate from US Dollars to Japanese Yen is:

1 US Dollar = 155.62 Japanese Yen

and the exchange rate from Australian Dollars to Japanese Yen is:

1 Australian Dollar = 102.09 Japanese Yen

An item costs 40 US Dollars.

Find the cost of the item in Australian Dollars.

The first exchange rate is 1 US Dollar = 155.62 Japanese Yen
So to convert from US Dollars to Japanese Yen, multiply by 155.62

40 × 155.62 = 6224.80 Japanese Yen

The second exchange rate is 1 Australian Dollar = 102.09 Japanese Yen
So to convert from Japanese Yen to Australian Dollars, divide by 102.09

6224.80 ÷ 102.09 = 60.9736... Australian Dollars

Round to 2 decimal places as we are dealing with money

60.97 Australian Dollars

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Jamie Wood

Author: Jamie Wood

Expertise: Maths Content Creator

Jamie graduated in 2014 from the University of Bristol with a degree in Electronic and Communications Engineering. He has worked as a teacher for 8 years, in secondary schools and in further education; teaching GCSE and A Level. He is passionate about helping students fulfil their potential through easy-to-use resources and high-quality questions and solutions.

Dan Finlay

Reviewer: Dan Finlay

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Dan graduated from the University of Oxford with a First class degree in mathematics. As well as teaching maths for over 8 years, Dan has marked a range of exams for Edexcel, tutored students and taught A Level Accounting. Dan has a keen interest in statistics and probability and their real-life applications.

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