GCSE Maths Practice: currency-conversion

Currency Conversion with Proportion

Currency conversion is a common GCSE Maths topic that links ratio and proportion with real-life money situations. At Foundation level, these questions focus on applying a single exchange rate correctly and presenting the final answer in an appropriate money format.

What Does an Exchange Rate Represent?

An exchange rate shows how much one currency is worth in another. For example, if £1 = €1.20, this means that every pound can be exchanged for one euro and twenty cents. Exchange rates are always given in GCSE exam questions, so your task is to apply the rate accurately rather than memorise it.

Because the exchange rate is greater than 1, converting from pounds to euros will increase the numerical value.

Choosing the Correct Operation

A key step in currency conversion is deciding whether to multiply or divide:

• Pounds to euros → multiply by the exchange rate
• Euros to pounds → divide by the exchange rate

Before calculating, always ask yourself whether the answer should be larger or smaller than the original amount.

Worked Example (Different Numbers)

Suppose the exchange rate is £1 = €1.25.

How many euros is £68?

Step 1: Estimate first. £68 × 1.25 is a bit more than £68 × 1.2, so the answer should be just over €80.

Step 2: Multiply: 68 × 1.25 = 85

Step 3: Write the answer as money → €85.00

Another Example

If £1 = €0.90 and someone exchanges £95:

95 × 0.90 = 85.5 → €85.50

Common Mistakes to Avoid

• Dividing instead of multiplying: This gives answers that are too small.
• Skipping estimation: Estimating helps catch calculation errors.
• Incorrect decimal multiplication: Line up decimal points carefully.
• Forgetting the currency symbol: Correct notation matters in GCSE exams.

Real-Life Uses of Currency Conversion

Currency conversion is used in many everyday situations, including:

• Planning spending money for holidays abroad
• Shopping on international websites
• Comparing prices in different countries
• Budgeting for travel or school trips

Frequently Asked Questions

Are Foundation questions always one step?
Yes. Foundation GCSE questions usually involve a single multiplication or division.

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

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

Study Tip

Always estimate first, then calculate. If your final answer does not match your estimate, recheck your working.