1 / 18

Converting Currencies

Converting Currencies. Assign Yourself: Data Collection due to Ms. Griffith’s email by 11:59PM tonight, 10/9!. Part 1 Simple Currency Conversion. Simple Currency Conversion: Given Conversion Explicitly. Option 1: If you understand, multiply or divide exchange rate.

mckile
Download Presentation

Converting Currencies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

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

  2. Part 1Simple Currency Conversion

  3. Simple Currency Conversion:Given Conversion Explicitly Option 1: If you understand, multiply or divide exchange rate. Option 2: Set up a proportion. 1 GBP = 1.9 AUD 40 * 1.9 = 76 AUD OR , x = 76 AUD 1 GBP = 1.9 AUD 500 / 1.9 = 263 GBP OR , x = 263 GBP • Sample question 1: A bank exchanges 1 British pound (GBP) for 1.9 Australian dollars (AUD). Convert: • 40 GBP to AUD • 500 AUD to GBP

  4. Simple Currency Conversion:Practice On Your Own A currency exchange will convert 1 Singapore dollar (SGD) to 5.4 South African rand (ZAR). Convert: 3000 SGD into ZAR b. 21000 ZAR into SGD

  5. Simple Currency Conversion:Practice On Your Own A currency exchange will convert 1 Singapore dollar (SGD) to 5.4 South African rand (ZAR). Convert: 3000 SGD into ZAR b. 21000 ZAR into SGD Try again on your own. Convert: c. 450 SGD into ZAR d. 1.35 ZAR into SGD

  6. Simple Currency Conversion:Practice On Your Own A currency exchange will convert 1 Singapore dollar (SGD) to 5.4 South African rand (ZAR). Convert: 3000 SGD into ZAR b. 21000 ZAR into SGD Try again on your own. Convert: c. 450 SGD into ZAR d. 1.35 ZAR into SGD

  7. Simple Currency Conversion:With Table of Exchange Rates 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) 1.03 2) a) 3000 * 0.625 = 1875 GBP b) 10000 * 0.6 = 6000 GBP 1. Write down exchange rate from: a. CHF to USD b. USD to CHF 2. Convert: a. 3000 USD to GBP b. 10000 francs to pounds.

  8. Simple Currency Conversion:With Table of Exchange Rates The table below shows exchange rates for the US Dollar. 1. Convert 200 USD into: a. TWD b. NOK c. CNY 2. Convert 5000 NOK into: a. USD b. CNY

  9. Simple Currency Conversion:With Table of Exchange Rates The table below shows exchange rates for the US Dollar. Answers: 1) a) 200 * 31.9632 = 6392.64 TWD b) 200 * 5.8818 = 1176.36 NOK c) 200 * 6.8268 = 1365.36 CNY 2) a) 5000/5.8818 = 850.08 USD b) 850.08 * 6.8268 = 5803.33 CNY 1. Convert 200 USD into: a. TWD b. NOK c. CNY 2. Convert 5000 NOK into: a. USD b. CNY

  10. Trading with Commission First Stop: Commission via Exchange Rate

  11. 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.

  12. Commission with Buy/Sell Make sure you choose the appropriate column (BUY or SELL). Answers: 400 * 0.6547 = 261.88 EUR 5000/87.36 = 57.23 USD 2000/6.8075 = 293.79 USD • Convert 400 USD into euros. • How much does it cost in USD to buy 5000 Yen (JPY)? • How many USD can you buy for 2000 Swedish kronor?

  13. Commission with Buy/Sell Make sure you choose the appropriate column (BUY or SELL). • Find the cost in USD of: • 400 Canadian dollars (CAD) • ¥12 430 • Find how many USD you could buy for: • € 2500 (EUR) • 57000 rand (ZAR)

  14. Commission with Buy/Sell Make sure you choose the appropriate column (BUY or SELL). Answers: 1. 390.13 USD 2. 142.28 USD 1. 3666.23 USD2. 7743.72 USD • Find the cost in USD of: • 400 Canadian dollars (CAD) • ¥12 430 • Find how many USD you could buy for: • € 2500 (EUR) • 57000 rand (ZAR)

  15. Fixed-Rate Commission Answers: Commission = R800 * 1.5% = R800 * 0.015 = R12 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. • What commission is charged? • How much does Wendy receive?

  16. Fixed-Rate Commission A bank exchanges UK pounds for a commission of 1.5%. For the following transactions, calculate: • The commission charged • How much the customer receives • Converting 500 pounds to USD where £1 UK buys 1.8734 USD. • Converting £1200 UK to New Zealand dollars where £1 UK buys $2.8424 NZ.

  17. Fixed-Rate Commission Answers: i. 500 * 0.015 = £ 7.50The bank charges £ 7.50 in commission.ii. 492.5 * 1.8734 = $ 922.65The customer receives $ 922.65. i. 1200 * 0.015 = £ 18The bank charges £ 18 in commission.ii. 1182 * 2.8424 = 43359.72 NZ.The customer receives $3359.72 NZ. A bank exchanges UK pounds for a commission of 1.5%. For the following transactions, calculate: • The commission charged • How much the customer receives • Converting 500 pounds to USD where £1 UK buys 1.8734 USD. • Converting £1200 UK to New Zealand dollars where £1 UK buys $2.8424 NZ.

  18. Book Practice • P. 458 - #3, 4 • P. 459 - #5 • P. 460 - #3 • P. 461 - #6, 7 • P. 462 - #2

More Related