converting currencies assign yourself: data collection due to ms. griffith’s email by 11:59pm...
TRANSCRIPT
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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
Simple Currency Conversion:
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
Simple Currency Conversion:
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
Simple Currency Conversion:
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
Simple Currency Conversion:
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
Simple Currency Conversion:
With Table of Exchange Rates
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
Simple Currency Conversion:
With Table of Exchange Rates
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
Commission with Buy/Sell
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
Commission with Buy/Sell
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?
Fixed-Rate Commission
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.
Fixed-Rate Commission
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