Different countries use different currencies:
The UK uses pounds (£)
The USA uses US Dollars ($)
Many counties in Europe use the Euro (€)
To convert between different currencies we use an exchange rate.
We need to be able to convert between different currencies using a given exchange rate.
If we are told the exchange rate is £1 = €1.15 it means that every 1 pound is worth 1.15 Euros.
If we wanted to change £250 into Euros we would need to calculate 250 × 1.15 to work out how many Euros we would get.
250 × 1.15 = 287.5
£250 = €287.50
We would get €287.50 in exchange for £250
If we want to convert €500 into pounds (and the exchange rate is still £1 = €1.15) we will have to calculate 500 ÷ 1.15
500 ÷ 1.15 = £434.78 (we always round money to 2 decimal places because we cannot have half a penny)
£434.78 = €500
We would get £434.78 in exchange for €500
Try these:
