Currency
The currency used in the UK is Pounds Sterling (拢s) - people in the UK are paid in 拢s and we buy and sell goods in 拢s.
Other currencies that you might be familiar with are the Euro (鈧) which is used in most of the EU countries and the US Dollar ($).
If you are buying something in Spain for example, you must pay in Euros but you will want to know how many 拢s you are actually spending.
To calculate this we use the exchange rate.
This tells us how many Euros are equivalent to 袄(拢1袄).
The exchange rate between currencies changes all the time depending on the financial situations in different countries.
Example 1
Shannon is going on holidays to Spain.
She wants to have some cash for spending so she changes \(拢150\) to Euro.
The exchange rate is \(\pounds 1 = \euro 1.13.\)
How many Euro does she get?
\(\pounds 1 = \euro 1.13\)
\(\pounds 150 = \euro 1.13 \times 150\)
\(= \euro 169.50\)
Shannon gets \( \euro 169.50\).
On a calculator the answer will be \(169.5\) but it is important to add a zero as there are 100 cents in a euro.
Question
Nadiya is from New York and is on holidays in the UK.
She spends \(拢35\) in a restaurant.
How many US dollars has she spent?
The exchange rate is \(拢1 = $1.37\).
Answer
\(拢1 = $1.37\)
\({拢35} = {$1.37~}\times{~35}\)
\(= $47.95\)
Nadiya has spent \($47.95\).
Example 2
Marcus is on holiday is Spain.
He buys sun cream costing \(\euro 10\).
The Exchange Rate is \(\pounds 1 = \euro 1.13\).
How much has Marcus spent in 拢s?
\(\euro 1.13 = \pounds 1\)
\(\euro 1 = \pounds 1 \div 1.13\)
\(\euro 10 = \pounds 1 \div 1.13 \times 10\) (This is the same as \(10 \div 1.13\))
\(= 8.8495575 = \pounds 8.85\) (nearest penny)
Key points
To change from 拢s to a foreign currency, multiply by the exchange rate.
To change from a foreign currency to 拢s, divide by the exchange rate.
Question
Jayden is shopping in Dublin.
He spends \(\euro 52.99\) on a sports top.
How much has he spent in 拢s?
The exchange rate is \(\pounds 1 = \euro 1.10\).
Answer
\(\pounds 1 = \euro 1.10\)
To change to 拢s, divide by the exchange rate.
\(\euro 52.99 \div 1.10 = 48.172727\)
\(= \pounds 48.17\) (nearest penny)
WATCH: What are exchange rates?
Different currencies around the world mean exchange rates are key when spending your money in another country.
Travel around the world with a modern-day Nellie Bly to discover how exchange rates can affect your power to buy in different countries.
Watch as she uses the exchange rate in each country to work out how much she has to pay and how much she can afford.
Test section
Question 1
The exchange rate for the US dollar is \(拢1 = $1.41\).
Molly changes \(拢75\) into dollars.
How many dollars does she receive?
Answer
\($105.75\)
Question 2
Oliver is going to Mexico for a holiday.
He has \(拢250\) to change into Mexican Pesos ($).
How many Pesos will he receive?
\(拢1 = 27.18\) Mexican Pesos ($).
Answer
\(6795\) Mexican Pesos ($).
Question 3
Jayden comes back from a shopping trip to Dublin with \(\euro 23\) in his wallet.
How may 拢鈥檚 is this if the exchange rate is \(拢1 = \euro 1.15\).
Answer
袄(拢20袄)
Question 4
Caitlin has a summer job in County Galway.
She earns \(\euro 9.50\) per hour and works for \(26\) hours.
Her employer tells her that \(\euro 1 = \pounds 0.89\).
How much has she earned in 拢s?
Answer
袄(拢219.83袄)
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