GCSE Maths Practice: currency-conversion

Currency Conversion with Larger Amounts

Currency conversion is a key GCSE Maths topic that connects ratio, proportion, and multiplication to real-life financial situations. While the method is the same for any amount, larger values can make calculation errors more likely, which is why careful thinking and estimation are important.

Understanding the Exchange Rate

An exchange rate tells you how much one currency is worth compared to another. For example, if £1 = €1.25, this means that every pound can be exchanged for one euro and twenty-five cents. Exchange rates are always given in GCSE questions, so your task is to apply them correctly.

Because the exchange rate here is greater than 1, converting from pounds to euros will increase the numerical value. Recognising this before calculating helps you avoid choosing answers that are too small.

Choosing the Correct Operation

At GCSE Foundation level, currency conversion usually involves one clear step:

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

Before doing any calculation, ask yourself whether the answer should be larger or smaller than the original amount.

Worked Example (Different Numbers)

Suppose the exchange rate is £1 = €1.35.

How many euros is £80?

Step 1: Estimate first. £80 × 1.35 is slightly more than £80 × 1.3, so the answer should be just over €100.

Step 2: Multiply: 80 × 1.35 = 108

Step 3: Write the answer as money → €108.00

Another Example

If £1 = €0.88 and someone exchanges £200:

200 × 0.88 = 176 → €176.00

Common Mistakes to Avoid

• Forgetting to estimate: This makes it harder to spot unreasonable answers.
• Incorrect decimal multiplication: Take care when multiplying by decimals.
• Dividing instead of multiplying: This leads to answers that are far too small.
• Missing the currency symbol: Correct notation matters in GCSE exams.

Real-Life Applications

Converting larger sums of money is common in everyday life, for example:

• Paying for accommodation or flights abroad
• Budgeting for holidays or school trips
• Comparing large purchases on international websites
• Managing travel or event budgets

Frequently Asked Questions

Are larger amounts harder to convert?
The method is exactly the same. Only the size of the calculation changes.

Should I always estimate first?
Yes. Estimation helps you quickly check whether your final answer is reasonable.

Do Foundation GCSE questions ever use multiple steps?
No. Foundation questions usually involve just one calculation.

Study Tip

When converting larger amounts, write down the calculation clearly and estimate first to reduce the chance of careless mistakes.