Exchange Rates

Exchange rate questions are a special type of conversion factor question, involving converting one currency to another eg dollars to pounds, euros to dollars etc.

Example

If £1 = 1.25$ how much is 17$ in £ and p?

If £1 is 1.25$ then 1$ = £(1/1.25) = 0.80p and 17$ = 17 x 0.80p = £13.60

Note that it is important to check that your answer makes sense. If £1 = 1.25$ then a pound is worth more than a dollar, so you will get less than £17 in return for 17$ ie the answer is NOT 17 x 1.25 but 17 1.25.

Example (Foundation Nov 14 Paper 2 Q10)

Lazslo came on holiday to Wales from Italy.

a) Lazslo changed 1550 (euros) into pounds (£). The rate of exchange was 1 = £0.84. How many pounds did he get?

b) During his stay, Lazslo spent £798 on his accommodation. Use the same exchange rate to convert this amount into euros.

Example (Foundation Nov 15 Paper 2 Q13)

£1 buys 192.45 Icelandic krona, or 100.32 Indian rupees or 53.67 Russian rubles.

a) Exchange £350 into Icelandic krona

b) How much money in £ would be needed to buy 2608.32 Indian rupees?

c) Complete the sentence below:

100 Russian rubles are worth the same as ........ Icelandic krona.

Example (Foundation June 16 Paper 2 Q18)

The currency in Brazil is known as the Brazilian Real, BRL. In 2010 £1 was worth 2.86 BRL and in 2014 it was worth 3.71 BRL. In 2010 Ava bought £3400 worth of Brazilian Real and in 2014 she changed this money back into pounds. Did Ava gain or lose money? State how much money Ava gained or lost, giving your answer correct to the nearest pound.