Converting between currencies

Before doing this section you should revise Converting between currencies in National 4 Lifeskills Maths.

Situations involving currency can have several stages of calculation. Some situations involve going abroad to one country and then coming home again. Others involve going abroad to one country then on to another country.

Example 1

Francesca lives in the UK and is going to visit friends in Italy. She brings \pounds300 in spending money with her. (The exchange rate is \pounds1 = 1.50\;euros).

While in Italy she spends 390\;euros.

When she comes home to the UK she changes her remaining euros back into pounds at the same exchange rate.

Francesca uses the same exchange office each time and it does not charge commission.

Question

How much does she get back in pounds?

Answer

Amount of euros  = 300 \times 1.50 = \euro450

She spends \euro390

Money remaining = 450 − 390 = \euro60

Amount of pounds  = 60 \div 1.50 = \pounds40

Now try this question

Question
Emily looks confused as she looks at the exchange rate board

Emily goes to Germany from the UK. She brings \pounds200 in euros. (The exchange rate is \pounds1 = \euro1.50).

While in Germany she spends 207\,euros.

When she comes home to the UK she changes her remaining euros back into pounds at the same exchange rate.

The exchange office Emily uses each time does not charge commission.

How much does she get back in pounds?

Amount of euros  = 200 \times 1.50 = \euro300

She spends \euro207

Money remaining = 300 − 207 = \euro93

Amount of pounds  = 93 \div 1.50 = \pounds62