Learning Goal: How do we convert money into different currencies?

Similar documents
Learning Goal: How do we convert money into different currencies?

IB Math Studies Name: page 1 Topic 1 TEST Review Worksheet Numbers and Algebra

Minbin has 1250 Japanese Yen which she wishes to exchange for Chinese Yuan.

Accuracy penalty applies in part (c) if answer not given correct to 2 decimal places.

CH7 IB Practice 2014

practice: simple & compound interest/depreciation

Foreign Currency Derivatives

Learning Goal: What is compound interest? How do we compute the interest on an investment?

White Paper. Hedging. Hedging Methods. Duration Hedge. Currency hedging methods

Ariba Network Fulfill: Orders and Invoices Supplier Fee Schedule

Problems involving Foreign Exchange Solutions

Polaris Portfolio Bond. A flexible saving solution designed to help you plan for all of life s adventures

Lecture 4. Types of Exchange Arrangements Rates of Exchange

AED United Arab Emirates Dirham SAR Saudi Riyal. AUD Australian Dollar SEK Swedish Krona. CAD Canadian Dollar SGD Singapore Dollar

Foreign exchange rates and trade

Additional Review Exam 1 MATH 2053 Please note not all questions will be taken off of this. Study homework and in class notes as well!

BLOOMBERG DOLLAR INDEX 2018 REBALANCE

Four Major Asset Classes

Ocean Cargo Special Policies Creating and Issuing an Ocean Cargo Special Policy

Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the

MPG End-2014 G-SIB template

6.4 Solving Linear Inequalities by Using Addition and Subtraction

Vontobel Holding AG Zurich, Switzerland (the "Guarantor") Bank Vontobel Europe AG Munich, Germany (the "Offeror")

Math 1070 Sample Exam 2

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bear! 73 Rich 49 Even Sell! Short Call Spread

Guidance regarding the completion of the Market Risk prudential reporting module for deposit-taking branches Issued May 2008

Foreign Currency Derivatives

Pension Adjustment System Two-Track

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bear 52 Fair 59 Even Sell Long Put Spread

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bear 75 Rich 37 Puts Sell Short Call Spread

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bear 70 Rich 47 Even Sell Short Call Spread

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bull 32 Cheap 73 Calls Buy Long Call Spread

Charts to the press release on the aggregated balance sheet of credit institutions June 2010

Charts to the press release on the aggregated balance sheet of credit institutions July 2010

For personal use only

Ocean Cargo Special Policies Creating and Issuing an Ocean Cargo Special Policy

For personal use only

Teacher Plus Worksheet

Those who are interested in international business may wish to take FIN 430 which is our course on international financial management.

AMCOR LIMITED. Notification of dividend / distribution. Update Summary. Announcement Details. Part 1 - Entity and announcement details

Your trading credits can be used towards any of the following commission charges:

Vanguard funds month-end NAV report

ESSENTIAL QUESTION How do you calculate the cost of repaying a loan?

Annual Market Review Portfolio Management

PRESS CONFERENCE 2 November 2012

EXAMINATIONS OF THE ROYAL STATISTICAL SOCIETY

As applicable on the day of the deposit and will be fixed for full term of your investment.

Q3 and 9M 2018 Trading Update

Vanguard funds month-end NAV report

Equations. Krista Hauri I2T2 Project

Express-course "Forex"

Econ 98- Chiu Spring 2005 Final Exam Review: Macroeconomics

Management of Economic Exposure

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bear 46 Fair 2 Puts! Sell Short Call Spread

FX Trading Strategies for August 7, 2018

Guidance regarding the completion of the Market Risk (Subsidiaries) prudential reporting module Issued September 2007

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bear 34 Cheap 8 Puts! Sell Long Put Spread

FOREIGN EXCHANGE MARKET. Luigi Vena 05/08/2015 Liuc Carlo Cattaneo

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bull 7 Cheap! 15 Puts Buy Long Call

FX Trading Strategies for August 9, 2018

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bull 24 Cheap 31 Puts Buy Long Call

Vanguard funds month-end NAV report

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bear! 79 Rich 18 Puts Sell! Short Call Spread

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bear 10 Cheap 1 Puts! Sell Long Put

FX Trading Strategies for September 17, 2018

Trend 1 Volatility 2 Skew 3 Correlation 4. Trades. AUD/USD Bear! 22 Cheap 5 Puts! Sell! Long Put

DEVELOPMENTS IN THE COST COMPETITIVENESS OF THE EUROPEAN UNION, THE UNITED STATES AND JAPAN MAIN FEATURES

Canada's equity market lagging world markets

Exam 2 Sample Questions FINAN430 International Finance McBrayer Spring 2018

IJPSS Volume 2, Issue 7 ISSN:

CVP Analysis. The Contribution Format. The Contribution Format. Sales Revenue $ 100,000 $ 50

2-6 Rates, Ratios, and Proportions. Warm Up Lesson Presentation Lesson Quiz Holt Algebra 1

The Markit CDS Converter Guide

TRAVELLING OVERSEAS?

Unit 5: International Trade

M11/5/MATSD/SP2/ENG/TZ1/XX. mathematical STUDIES. Thursday 5 May 2011 (morning) 1 hour 30 minutes. instructions to candidates

Listing of bonds. at the Stuttgart Stock Exchange

Funding during the financial crisis

Currency Hedging for Long Term Investors with Liabilities

AN INTRODUCTION TO TRADING CURRENCIES

THE SMARTER WAY TO TRAVEL

Name Form. AO1. Recall, select and communicate their knowledge and understanding of concepts, issues and terminology.

Your trading credits can be used towards any of the following commission charges:

MAY 2018 PROFESSIONAL EXAMINATIONS QUANTITATIVE TOOLS IN BUSINESS (PAPER 1.4) CHIEF EXAMINER S REPORT, QUESTIONS AND MARKING SCHEME

Unit 1 Test Review. Be able to justify each step in a two-step equation. (HS.A-REI.A.1)

Introduction to Foreign Exchange Slides for International Finance (KOM Chapter 14)

ADDITIONAL SERVICES ACCOUNT CHARGES & PROCESSING TIMES. Your account charges and processing times explained

Performance Review. University of Guelph Pension Plans. 4 th Quarter 2014

Economics (Jun ) General Certificate of Secondary Education June Personal Economics TOTAL. Time allowed 1 hour 15 minutes

3. If the price of a British pound increases from $1.50 per pound to $1.80 per pound, we say that:

Last Assessment Opportunity November 2016

Money Math for Teens. Introduction to Earning Interest: 9th and 10th Grades Version

Our Fees Explained FULL DETAILS OF OUR COMPETITIVE FEES

Math 227 (Statistics) Chapter 6 Practice Test MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

ECO 328 SUMMER Sample Questions Topics I.1-3. I.1 National Income Accounting and the Balance of Payments

The Nitty-Gritty of Currency Hedged Bonds

Total monthly allocation for new client. SGD 7,200 (USD 4,800) for the first 18 months

Paper Reference. Paper Reference(s) 6683/01 Edexcel GCE Statistics S1 Advanced/Advanced Subsidiary

Condensed Consolidated Financial Statements. Contents

Please read this document carefully.

Transcription:

Name IB Math Studies Year 1 Date 7-3 Cuurency and Commission Rates Learning Goal: How do we convert money into different currencies? Warm-Up: 1. Zoran wants to change 200 Singapore dollars (SGD) to euros. The exchange rate is 1SGD = 0.588 euros. The bank charges no commission. Calculate how many euros Zoran receives. Commission Commission is the amount/percentage made by the exchanging agency when converting between currencies. If the bank charges commission: 1. Calculate the commission and subtract it from the total that you are exchanging FIRST. 2. Then use the remaining money to continue with the rest of your conversion. Model Problem: Zoran wants to change 200 Singapore dollars (SGD) to euros. The exchange rate is 1SGD = 0.588 euros. The bank charges 2% commission. a) Calculate how many SGD Zoran will have to pay the exchanging agency. b) Calculate how many euros Zoran receives after the exchange.

Let s try one together! 1. Heindrich travels to England to buy some clothes. He changes 3000 euros to British pounds (GBP) at the rate of 1 euro = 0.8524 GBP. The bank charges 1.5% commission. a. Find how many euros the bank charges for commission. b. Find how much Heindrich receives for his 3000 euros. Now you try! 2. Mike travels from the United States to Spain. He changes 2000 United States Dollars to Euros at a rate of 1 USD =.8564 EUR. The bank that Mike exchanges his money at charges 1.8% commission. a. How any Euros does Mike receive when he travels to Spain? During his trip in Spain, Mike spends 1000 Euros. When Mike returns to the United States he decides to convert his remaining Euros back to USD at an exchange rate of 1 EUR = 1.33 USD with no commission charged. b. Calculate the amount of USD Mike receives

Buying: You have currency from another country and want to change it to your country s currency. You are buying your currency. BUYING = BACK HOME Buy Rate vs. Sell Rate with Commission Selling: You want to purchase a foreign currency. You are selling your currency. SELLING = SAILING AWAY Let s try one together! 3. A Swiss bank shows currency conversion rates in a table. Part of the table is shown below, which gives the exchange rate between British pounds (GBP) and Swiss francs (CHF). Buy Sell GBP 2.3400 2.4700 This means that the bank will sell its British pounds to a client at an exchange rate of 1 GBP = 2.4700 CHF. What will be the buying price for 1 GBP? Andrew is going to travel from France to Great Britain. He plans to exchange 1000 CHF into GBP. The bank sells him the money and charges 1.25% commission. How much money will he receive? Give your answer to the nearest pound. Andrew spends 328 GBP in Great Britain and changes the remainder into CHF. There is no commission charge on this exchange. How much money will he receive? Give your answer to the nearest franc.

Buying: You have currency from another country and want to change it to your country s currency. You are buying your currency. BUYING = BACK HOME Buy Rate vs. Sell Rate with Commission Selling: You want to purchase a foreign currency. You are selling your currency. SELLING = SAILING AWAY Now you try! 4. Pietro arrives in Singapore and, at the airport, changes 800 euros (EUR) to Singapore dollars (SGD). The bank rates quoted at the airport for exchanging EUR with SGD are given in the following table. There is a 1% commission charged on all exchanges. Calculate the number of SGD Pietro receives. Pietro spends 100 SGD during his trip and wishes to change the rest back to EUR. Calculate the number of EUR Pietro receives

Name Lesson 7-3 Homework Date 1. Zog from the planet Mars wants to change some Martian Dollars (MD) into US Dollars (USD). The exchange rate is 1 MD = 0.412 USD. The bank charges 2% commission. How many US Dollars will Zog receive if she pays 3500 MD? Zog meets Zania from Venus where the currency is Venusian Rupees (VR). They want to exchange money and avoid bank charges. The exchange rate is 1 MD = 1.63 VR. How many Martian Dollars, to the nearest dollar, will Zania receive if she gives Zog 2100 VR? 2. Sven is travelling to Europe. He withdraws $800 from his savings and converts it to euros. The local bank is buying euros at $1: 0.785 and selling euros at $1: 0.766. Use the appropriate rate above to calculate the amount of euros Sven will receive. Suppose the trip is cancelled. How much will he receive if the euros in part are changed back to dollars? How much has Sven lost after the two transactions?

4. A Swiss bank shows currency conversion rates in a table. Part of the table is shown below, which gives the exchange rate between British pounds (GBP) and US dollars (USD). Buy Sell USD 1.6900 1.7700 This means that the bank will sell its US dollars to a client at an exchange rate of 1 USD = 1.7700 GBP. What will be the buying price for 1 USD? Jessica is going to travel from the United Kingdom to the United States. She plans to exchange 3000 GBP into USD. The bank sells her the money and charges 1.4% commission. How much money will she receive? Give your answer to the nearest dollar. Jessica spends 1220 USD and changes the remainder into GBP. There is no commission charge on this exchange. How much money will she receive? Give your answer to the nearest pound.

FINAL EXAM REVIEW 5. Daniel grows apples and chooses at random a sample of 100 apples from his harvest. He measures the diameters of the apples to the nearest cm. The following table shows the distribution of the diameters. Using your graphic display calculator, write down the value of the mean of the diameters in this sample; the standard deviation of the diameters in this sample. 6. The following table shows the number of bicycles, x, produced daily by a factory and their total production cost, y, in US dollars (USD). The table shows data recorded over seven days. Write down the Pearson s product moment correlation coefficient, r, for these data. Hence comment on the result. Write down the equation of the regression line yon x for these data, in the form y = ax + b (d) Estimate the total cost, to the nearest USD, of producing 13 bicycles on a particular day.