GCSE Maths Practice: currency-conversion

Currency Conversion with Decimal Exchange Rates

Currency conversion is an important Foundation GCSE Maths topic that combines ratio, proportion, and multiplication with real-life money skills. These questions test whether you can correctly use a given exchange rate and write your final answer in an appropriate money format.

Understanding Exchange Rates

An exchange rate shows how much one currency is worth in another currency. For example, if £1 = €1.15, this means that every pound is worth one euro and fifteen cents. When converting from pounds to euros, you are finding the equivalent value in euros using this rate.

Because the exchange rate is greater than 1, the amount in euros will be greater than the amount in pounds. This simple observation helps you choose the correct calculation.

Choosing the Correct Operation

At GCSE Foundation level, currency conversion usually involves a single step:

• Converting pounds to euros → multiply by the exchange rate
• Converting euros to pounds → divide by the exchange rate

Before calculating, always ask yourself whether the number should increase or decrease.

Worked Example (Different Numbers)

Suppose the exchange rate is £1 = €1.18.

How many euros is £64?

Step 1: Estimate first. Since €1.18 is close to €1.20, the answer should be slightly more than 64 × 1.2 ≈ 76.8.

Step 2: Multiply: 64 × 1.18 = 75.52

Step 3: Write the answer as money → €75.52

Another Example

If £1 = €0.92 and someone exchanges £85:

85 × 0.92 = 78.2 → €78.20

Common Mistakes Students Make

• Forgetting to estimate: This can lead to answers that are clearly too large or too small.
• Incorrect decimal multiplication: Always line up decimals carefully.
• Missing the currency symbol: GCSE mark schemes expect correct notation.
• Not using two decimal places: Money should normally be written to two decimal places.

Real-Life Applications

Currency conversion is used in many everyday situations, including:

• Planning holiday spending money
• Buying items from overseas websites
• Comparing prices in different countries
• Managing travel budgets for school trips

Frequently Asked Questions

Will Foundation GCSE questions use awkward numbers?
Yes. Numbers like £88 are common, as they test accurate decimal multiplication.

Do I need to memorise exchange rates?
No. The exchange rate will always be provided.

Should I always write two decimal places?
Yes, unless the amount is exactly a whole number of euros.

Study Tip

Always do a quick estimate before calculating. If your final answer is far from your estimate, check your multiplication carefully.