Currency Conversions

Since different countries have currencies which are not of equal value, currency conversions are used to change one currency to another using exchange rates. The exchange rate is the ratio of the value of one currency to another. For example:

A book costs 30$ US in a certain country.

This same book costs 1$ in Australian Dollars.

The ratio of currency value is 30:1.

That means that if a bike cost 90$ US, it would cost 3$ Australian.

For us, we found that simple conversions between two currencies were not particularly difficult. Something that aided us when we were learning this skill is that currency conversions are just like the ratios that one learns in elementary school. The same rules applying to ratio, i.e., consistently using one element as the denominator and one as the numerator, apply here as well. Conversions using a conversion table were a bit more complicated.

What is the value of p??

According to the first line of the chart shown above, 1 GBP= 1.56 USD. If 1 GBP= 1.56 USD, then 1 GBP/ 1.56 USD= P /1

Cross- multiply. 1 = 1.56 x P

P= 1/1.56 (.641)