 Converting Currencies Assign Yourself: Data Collection due to Ms. Griffith’s by 11:59PM tonight, 10/9!

 Part 1 Simple 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 AUD b. 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 Own A currency exchange will convert 1 Singapore dollar (SGD) to 5.4 South African rand (ZAR). Convert: a SGD into ZAR b ZAR into SGD

Simple Currency Conversion: Practice On Your Own A currency exchange will convert 1 Singapore dollar (SGD) to 5.4 South African rand (ZAR). Convert: a SGD into ZAR b ZAR into SGD Try again on your own. Convert: c. 450 SGD into ZAR d ZAR into SGD

Simple Currency Conversion: Practice On Your Own A currency exchange will convert 1 Singapore dollar (SGD) to 5.4 South African rand (ZAR). Convert: a SGD into ZAR b ZAR into SGD Try again on your own. Convert: c. 450 SGD into ZAR d 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 USD to GBP b 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) ) a) 3000 * = 1875 GBP b) * 0.6 = 6000 GBP //////USDGBPCHF USD GBP CHF

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) Norwegian Kroner (NOK) 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 * = TWD b) 200 * = NOK c) 200 * = CNY 2) a) 5000/ = USD b) * = CNY ///////1 USD Taiwan Dollar (TWD) Norwegian Kroner (NOK) Chinese Yuan (CNY)6.8268

 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: * = EUR /87.36 = USD / = USD CountryCodeBuysSells EuropeEUR U.K.GBP AustraliaAUD CanadaCAD ChinaCNY DenmarkDKK JapanJPY NorwayNOK Singap.SGD S. AfricaZAR SwedenSEK

Commission with Buy/Sell 1. Find the cost in USD of: Canadian dollars (CAD) 2. ¥ Find how many USD you could buy for: 1. € 2500 (EUR) rand (ZAR) Make sure you choose the appropriate column (BUY or SELL). CountryCodeBuysSells EuropeEUR U.K.GBP AustraliaAUD CanadaCAD ChinaCNY DenmarkDKK JapanJPY NorwayNOK Singap.SGD S. AfricaZAR SwedenSEK

Commission with Buy/Sell 1. Find the cost in USD of: Canadian dollars (CAD) 2. ¥ Find how many USD you could buy for: 1. € 2500 (EUR) rand (ZAR) Make sure you choose the appropriate column (BUY or SELL). Answers: USD USD USD USD CountryCodeBuysSells EuropeEUR U.K.GBP AustraliaAUD CanadaCAD ChinaCNY DenmarkDKK JapanJPY NorwayNOK Singap.SGD S. AfricaZAR SwedenSEK

Fixed-Rate Commission Answers: a. Commission = R800 * 1.5% = R800 * = 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 USD. b. Converting £1200 UK to New Zealand dollars where £1 UK buys $ NZ.

Fixed-Rate Commission Answers: a. i. 500 * = £ 7.50 The bank charges £ 7.50 in commission. ii * = $ The customer receives $ b. i * = £ 18 The bank charges £ 18 in commission. ii * = NZ. The customer receives $ 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 USD. b. Converting £1200 UK to New Zealand dollars where £1 UK buys $ NZ.

Book Practice  P #3, 4  P #5  P #3  P #6, 7  P #2