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# Currency Conversions

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### Currency Conversions

1. 1. Currency Conversions
2. 2. Notes on converting currency <ul><li>There are several methods that can be used to convert currency. </li></ul><ul><li>This is one method that will always work and can be useful for other conversions (i.e. metric to standard) </li></ul>
3. 3. How to convert currency <ul><li>Determine the currencies that you will be using </li></ul><ul><li>Find the current conversion rate for those currencies </li></ul><ul><li>Set up the conversion proportion </li></ul><ul><li>Solve the conversion proportion </li></ul><ul><li>Check for reasonableness of answer </li></ul>
4. 4. Determine the currencies <ul><li>Problem: You have \$50. How many Euros will you receive? </li></ul><ul><li>US dollars </li></ul><ul><li>Euros </li></ul>
5. 5. Conversion Rate <ul><li>Problem: You have \$50. How many Euros will you receive? </li></ul><ul><li>Current conversion rate (11/06/00) is 1.486 EUR / \$ </li></ul>
6. 6. Setting up the proportion <ul><li>1.486 EUR </li></ul><ul><li> = </li></ul><ul><li> 1 \$ </li></ul><ul><li>EUR </li></ul><ul><li>50 \$ </li></ul>
7. 7. Solving the proportion <ul><li>1.486 EUR </li></ul><ul><li> = </li></ul><ul><li> 1 \$ </li></ul><ul><li>Step 1: Multiply diagonally </li></ul><ul><li>1.486 x 50 = 74.3 </li></ul><ul><li>EUR </li></ul><ul><li>50 \$ </li></ul><ul><li>Step 2: Divide by the third number </li></ul><ul><li>74.3 ÷ 1 = 74.3 EUR </li></ul>
8. 8. Check for Reasonableness of Answer <ul><li>If the conversion is 1.486 EUR for each \$1, then you should have more Euros than dollars </li></ul><ul><li>Answer </li></ul><ul><li>\$50 = 74.3 EUR </li></ul><ul><li>This is correct! </li></ul>