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Currency Exchange Conversions
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Currency Exchange Conversions
Use the exchange rate shown in each question. Show your calculations and round money amounts to the nearest cent where needed.
Understanding Exchange Rates
1.In your own words, explain what an exchange rate tells you.
2.A travel website states that 1 NZD = 0.62 USD. Which statement follows from this rate?
- One New Zealand dollar exchanges for 62 US cents.
- One US dollar exchanges for 62 New Zealand cents.
- One New Zealand dollar exchanges for one US dollar.
3.Finn is ordering a jacket priced in US dollars. Give one reason she should check the NZD-to-USD exchange rate before paying with her New Zealand bank card.
Currency Conversion Practice
For the following questions, use 1 NZD = 0.62 USD. Ignore any bank or transaction fees.
4.Convert NZD 32 to USD. Show your calculation and give your answer to the nearest cent.
5.Convert NZD 85 to USD. Show your calculation and give your answer to the nearest cent.
6.A traveller exchanges NZD 140 for US dollars at the stated rate. How many US dollars do they receive? Show your calculation.
7.Before calculating exactly, estimate the USD value of NZD 60 using 1 NZD = 0.62 USD. Explain how you made your estimate.
Working Backwards
8.A pair of headphones costs USD 48. Using 1 NZD = 0.62 USD, calculate the NZD amount with the same value. Round to the nearest cent and show your working.
9.To change an amount from NZD to USD at 1 NZD = 0.62 USD, which operation should you use?
- Multiply the NZD amount by 0.62.
- Divide the NZD amount by 0.62.
- Add 0.62 to the NZD amount.
- Subtract 0.62 from the NZD amount.
10.Describe the steps for converting a price from NZD to USD when 1 NZD = 0.62 USD. Include the operation and how you would handle the final amount.
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