Most currencies in the modern world are decimalised. This usually means that there is a unit of currency such as the dollar, pound, kroner, etc. This basic unit is often divided into smaller parts (often one hundreth of the main unit) such as the cent, penny, ore, etc. This means that most currency calculations can usually be carried out using normal decimal arithmetic and normal calculators and computers. This was not always the case. For example, many countries used a system derived from that of the Roman Empire in which the main unit was the pound. This was divided into twenty shilling which were, in turn, each divided into twelve pennies (originally denarii). This was a system in which it was difficult to perform even simple calculations such as addition. Such non-decimal currency systems are now rare, which is fortunate for accountants!
Some common abbreviations with financial math:
USD = United States Dollars
AUD = Australian Dollars
Convert the currencies using the following values:
| USD |
AUD |
Pounds Sterling |
Yen |
German Mark |
| 1 |
1.63 |
.610 |
139.49 |
1.782 |
If you have 50 USD, how many Yen could you get?
50 USD x 139.49 = 6.975 Yen
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