Converting between currenciesChanging back to British money

Travelling abroad involves converting currencies into the currency of the country visited. To calculate the amount, exchange rates are used. Some foreign exchange providers charge a commission.

Part of Application of MathsManaging finance

Changing back to British money

To change back to British money you divide by the exchange rate.

\(British\, money = \frac{{foreign\, currency}}{{exchange\, rate}}\)

Example

Dave returns from Switzerland with \(55\) Swiss francs.

He changes the Swiss francs back to British money, at a rate of \(£1 = 2.32\) francs.

How much does he get back?

Answer

One pound is \(2.32\) francs:

Amount of pounds\( = \frac{{55}}{{2\cdot32}} = 23.70689\)

You must round the answer to two decimal places.

So Dave gets \(\pounds23.71\) back.

Now try this question:

Question

Heather returns from Australia with \(200\) dollars.

She changes them back to British money when the exchange rate is \(\pounds1 = 2.82\) dollars.

How much does she get back?