Exchange Rates
Exchange rates are used to compare and convert between different currencies.
How do I convert between currencies?
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Start by writing the exchange rate
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£1.00 (GBP) = €1.17 (EUR)
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To convert from GBP to EUR, multiply by 1.17
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Because 1.00 × 1.17 = 1.17
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To convert from EUR to GBP, divide by 1.17
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Because 1.17 ÷ 1.17 = 1.00
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To find £28 in Euros
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28 × 1.17 = €32.76
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To find €75 in Pounds
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75 ÷ 1.17 = £64.10 (to the nearest penny)
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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 = 60.49368319... Australian Dollars
Round to 2 decimal places as we are dealing with money
60.49 Australian Dollars
