Converting Currencies Assign Yourself: Data Collection due to Ms. Griffith’s email by 11:59PM...

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Converting Currencies

Assign Yourself: Data Collection due to Ms. Griffith’s email by 11:59PM tonight, 10/9!

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Part 1Simple Currency

Conversion

Simple Currency Conversion:

Given Conversion Explicitly

Sample question 1: A bank exchanges 1 British pound (GBP) for 1.9 Australian dollars (AUD). Convert:a. 40 GBP to AUDb. 500 AUD to GBP

Option 1: If you understand, multiply or divide exchange rate.

Option 2: Set up a proportion.

a. 1 GBP = 1.9 AUD

40 * 1.9 = 76 AUD

OR , x = 76 AUD

b. 1 GBP = 1.9 AUD

500 / 1.9 = 263 GBP

OR , x = 263 GBP


Practice On Your OwnA currency exchange will convert 1 Singapore dollar (SGD) to

5.4 South African rand (ZAR). Convert:a. 3000 SGD into ZAR b. 21000

ZAR into SGD


Practice On Your OwnA currency exchange will convert 1 Singapore

dollar (SGD) to 5.4 South African rand (ZAR). Convert:

a. 3000 SGD into ZAR b. 21000 ZAR into SGD

Try again on your own. Convert:c. 450 SGD into ZAR d. 1.35 ZAR

into SGD


Practice On Your OwnA currency exchange will convert 1 Singapore

dollar (SGD) to 5.4 South African rand (ZAR). Convert:

a. 3000 SGD into ZAR b. 21000 ZAR into SGD

Try again on your own. Convert:

c. 450 SGD into ZAR d. 1.35 ZAR into SGD


With Table of Exchange Rates

1. Write down exchange rate from:

a. CHF to USD b. USD to CHF

2. Convert:

a. 3000 USD to GBP

b. 10000 francs to pounds.

Step 1: Choose row for original currency and column for new currency.

Step 2: Multiply.(NOTE: If only one is given, you have to decide whether to

multiply or divide.)

Answers:

1) a) 0.97

b) 1.03

2) a) 3000 * 0.625 = 1875 GBP

b) 10000 * 0.6 = 6000 GBP

////// USD GBP CHF

USD 1 0.625 1.03

GBP 1.60 1 1.67

CHF 0.97 0.60 1



1. Convert 200 USD into:

a. TWD b. NOK c. CNY

2. Convert 5000 NOK into:

a. USD b. CNY

The table below shows exchange rates for the US Dollar.

/////// USD

Taiwan Dollar (TWD) 31.9632

Norwegian Kroner (NOK) 5.8818

Chinese Yuan (CNY) 6.8268



1. Convert 200 USD into:

a. TWD b. NOK c. CNY

2. Convert 5000 NOK into:

a. USD b. CNY

The table below shows exchange rates for the US Dollar.

Answers:

1) a) 200 * 31.9632 = 6392.64 TWD

b) 200 * 5.8818 = 1176.36 NOK

c) 200 * 6.8268 = 1365.36 CNY

2) a) 5000/5.8818 = 850.08 USD

b) 850.08 * 6.8268 = 5803.33 CNY

/////// 1 USD

Taiwan Dollar (TWD) 31.9632

Norwegian Kroner (NOK) 5.8818

Chinese Yuan (CNY) 6.8268

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Trading with Commission

First Stop: Commission via Exchange Rate

Commission• Currency traders don’t

exchange money just because they’re nice…

• Customers usually have to pay for this service.

• The commission can vary from ½% to 3% of could be a “flat fee.”

• Some traders charge no commission but offer worse exchange rates instead.

Commission with Buy/Sell

1. Convert 400 USD into euros.

2. How much does it cost in USD to buy 5000 Yen (JPY)?

3. How many USD can you buy for 2000 Swedish kronor?

Make sure you choose the appropriate column (BUY or SELL).

Answers:

1. 400 * 0.6547 = 261.88 EUR

2. 5000/87.36 = 57.23 USD

3. 2000/6.8075 = 293.79 USD

Country

Code

Buys Sells

Europe EUR 0.6819

0.6547

U.K. GBP 0.6064

0.5821

Australia

AUD 1.0883

1.0601

Canada CAD 1.0681

1.0253

China CNY 6.8465

6.8017

Denmark

DKK 5.0593

4.8569

Japan JPY 90.99 87.36

Norway NOK 5.5248

5.3038

Singap. SGD 1.4047

1.3485

S. Africa

ZAR 7.3608

7.0663

Sweden SEK 6.8075

6.5352


1. Find the cost in USD of:

1. 400 Canadian dollars (CAD)

2. ¥12 430

2. Find how many USD you could buy for:

1. € 2500 (EUR)

2. 57000 rand (ZAR)

Make sure you choose the appropriate column (BUY or SELL).Country

Code

Buys Sells

Europe EUR 0.6819

0.6547

U.K. GBP 0.6064

0.5821

Australia

AUD 1.0883

1.0601

Canada CAD 1.0681

1.0253

China CNY 6.8465

6.8017

Denmark

DKK 5.0593

4.8569

Japan JPY 90.99 87.36

Norway NOK 5.5248

5.3038

Singap. SGD 1.4047

1.3485

S. Africa

ZAR 7.3608

7.0663

Sweden SEK 6.8075

6.5352


1. Find the cost in USD of:

1. 400 Canadian dollars (CAD)

2. ¥12 430

2. Find how many USD you could buy for:

1. € 2500 (EUR)

2. 57000 rand (ZAR)

Make sure you choose the appropriate column (BUY or SELL).

Answers:

1. 1. 390.13 USD

2. 142.28 USD

2. 1. 3666.23 USD2. 7743.72 USD

Country

Code

Buys Sells

Europe EUR 0.6819

0.6547

U.K. GBP 0.6064

0.5821

Australia

AUD 1.0883

1.0601

Canada CAD 1.0681

1.0253

China CNY 6.8465

6.8017

Denmark

DKK 5.0593

4.8569

Japan JPY 90.99 87.36

Norway NOK 5.5248

5.3038

Singap. SGD 1.4047

1.3485

S. Africa

ZAR 7.3608

7.0663

Sweden SEK 6.8075

6.5352

Fixed-Rate Commission

Answers:

a. Commission = R800 * 1.5% = R800 * 0.015 = R12

b. Wendy receives 788 * 3.86 rubles

≈ 3042 rubles

(We only multiply by 788 instead of 800 because the banker took 12 for commission.)

A banker changes South African rand to other currencies at a fixed commission of 1.5%. Wendy wishes to convert R800 to rubles where R1 buys 3.86 Russian rubles.

a. What commission is charged?

b. How much does Wendy receive?


A bank exchanges UK pounds for a commission of 1.5%. For the following transactions, calculate:

i. The commission charged

ii. How much the customer receives

a. Converting 500 pounds to USD where £1 UK buys 1.8734 USD.

b. Converting £1200 UK to New Zealand dollars where £1 UK buys $2.8424 NZ.


Answers:

a. i. 500 * 0.015 = £ 7.50The bank charges £ 7.50 in commission.

ii. 492.5 * 1.8734 = $ 922.65The customer receives $ 922.65.

b. i. 1200 * 0.015 = £ 18The bank charges £ 18 in commission.

ii. 1182 * 2.8424 = 43359.72 NZ.The customer receives $3359.72 NZ.

A bank exchanges UK pounds for a commission of 1.5%. For the following transactions, calculate:

i. The commission charged

ii. How much the customer receives

a. Converting 500 pounds to USD where £1 UK buys 1.8734 USD.

b. Converting £1200 UK to New Zealand dollars where £1 UK buys $2.8424 NZ.

Book Practice

P. 458 - #3, 4

P. 459 - #5

P. 460 - #3

P. 461 - #6, 7

P. 462 - #2

Converting Currencies Assign Yourself: Data Collection due to Ms. Griffith’s email by 11:59PM...

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