484
Topic Key Ideas, Formulas, and Techniques Examples
Converting from US$ into
a Foreign Currency, p. 471- Write an equation for the value of US$1 in the
foreign currency, using the “Currency per US$”
rate. - Multiply both sides by the number of dollars.
Convert US $3,724.59 into
euros.
(Example 11.1.1)Converting from a Foreign
Currency into US$, p. 472- Write an equation for the value of one unit
of foreign currency in US$, using the “US$
Equivalent” rate. - Multiply both sides by the number of units of
foreign currency.
Convert 348 Turkish new liras
into US$.
(Example 11.1.2)Converting between Two
Foreign Currencies. p. 474- Write an equation for the value of one unit of the
currency you are converting from in the currency
you are converting to, using a cross rate table. - Or convert the amount into US$ and then from
US$ into the new foreign currency.
Convert 40,000 Russian rubles
into Thai baht.
(Example 11.1.6)Conversions Using Retail
Rates, p. 475- If you are exchanging US$ for a foreign currency,
use the sell rate. - If you are exchanging foreign currency for US$,
use the buy rate. - If the rate is not given in the form you need,
divide both sides by the appropriate number to
change it into that form.
Suppose you want to
exchange $200 for euros. The
buy rate is € 1 $1.2575;
the sell rate is € 1 $1.2954.
Calculate the amount you
would receive in euros.
(Example 11.1.7)CHAPTER 11
SUMMARY