Name IB Math Studies Year 1 Date 7-2 Buy, Sell, and Commission Rates Learning Goal: How do we convert money into different currencies? Warm-Up: In this question give all answers correct to two decimal places. 1. Javier takes 5000 US dollars (USD) on a business trip to Venezuela. He exchanges 3000 USD into Venezuelan bolívars (VEF). The exchange rate is 1 USD == 6.3021 VEF. During his time in Venezuela, Javier spends 1250 USD and 12 000 VEF. On his return home, Javier exchanges his remaining VEF into USD. The exchange rate is 1 USD == 8.7268 VEF. a. Calculate the amount of VEF that Javier receives. b. Calculate the amount, in USD, that Javier has remaining after his trip to Venezuela.
Exchange Rates Represented in a Table In this case, we select the row by the currency we are converting from, and the column by the currency we are converting to. a. Convert 2000 Chinese Yuan to Japanese yen. b. Convert 1543 Japanese yen to Hong Kong Dollars. Let s Practice: 1. Below is an exchange rate chart summarizing different currencies in 3 countries: a. 1 US $ is worth how many GB? b. Convert $55 to GB Pound. c. 1 GB is worth how many US $?
Buy Rate vs. Sell Rate Sometimes there will be two exchange rates for changing currency a BUYING rate and a SELLING rate. 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 Selling: You want to purchase a foreign currency. You are selling your currency. SELLING = SAILING AWAY Example: If you live in Europe and are going on vacation in the USA then a bank will SELL you US dollars at a certain rate. When you return, a bank will BUY the dollars you have left and give you euros for them. Let s try one together! 1. A French bank advertises the following conversion rates for buying and selling British pounds (GBP) and American dollars (USD). a. Write down the selling price for 1 USD. BUY SELL 1 USD = 0.761 euros 1 USD = 0.843 euros 1 GBP = 1.174 euros 1 GBP = 1.181 euros b. Peter has just returned from America and wants to exchange 250USD back to euros. Calculate how many euros he receives. c. Jamal is going on holiday to Britain and wants to change 500 euros. Find how many GBP he receives.
Now you try! 2. A bank in Canada offers the following exchange rate between Canadian dollars (CAD) and Euros (EUR). The bank buys 1 CAD for 0.821 Euros (EUR) and sells 1 CAD for 0.758 EUR. A customer wishes to exchange 800 Canadian dollars for euros. a. If a customer is traveling to Europe, Find how many euros the customer will receive. b. The customer has to cancel his trip. How many Canadian dollars will he receive if the euros in part (a) are changed back to CAD? 3. Sjors is traveling to Europe. He withdraws 8000 Swedish kronor (SEK) from his savings and converts it to euros. The local bank buys SEK at 1 SEK = 0.111 euros and sells SEK at 1 SEK = 0.121 euros. a. Use the appropriate rate to calculate the amount of euros Sjor will receive. b. The trip is cancelled. How much will Sjors receive if the euros in part (a) are exchanged back to SEK?
Name: 7-2 Homework: 1. The table alongside shows the transfer rates between US dollars (USD), Swiss francs (CHF), and British pounds (GBP). a. Write down the exchange rate from: 1 CHF to USD 1 USD to CHF 3000 USD to GBP 10,000 francs to pounds 2. Answer the questions below based on the following currency conversion table: USD JPY GBP US Dollars (USD) 1 111.111 0.631 Japanese Yen (JPY) 0.009 1 0.006 British Pounds (GBP) 1.585 166.667 1 1 JPY (Ұ) is worth how many GBP ( )? 1 US $ is worth how many GBP ( )? 25 GBP ( ) is worth how many US $? 100 JPY is worth how many US Dollars
3. The table shows some exchange rates for the Japanese Yen (JPY). Currency Ayako has 2550 Japanese yen which she wishes to exchange for Chinese yuan. a. Calculate how many yuan she will receive. Give your answer to the nearest yuan. 1 JPY Canadian dollar 0.01231 Chinese Yuan 0.08086 Euro 0.009261 British pound 0.007897 Ross has 2150 Canadian dollars which he wishes to exchange for Japanese yen. b. Calculate how many yen he will receive. Give your answer to the nearest yen. c. Find how many British pounds there are to one euro. Give your answer correct to 2 decimal places. 4. When Roger traveled to Australia, he changed 2850 USD to AUD based on the following conversions. How many AUD did Roger receive? BUYS SELLS 1 USD = 0.786 AUD 1 USD = 0.843 AUD a. He spends 50 AUD, and then comes back to the United States. How many USD does he receives when he comes back home?