exchange

Currency Exchange Rates - How To Convert Currency

in this video we're gonna talk about how

to convert currency a given the currency

exchange rate so in this problem

John has 15 thousand US dollars that he

wants to convert into euros how much

money in Euros will he receive now we're

given the currency exchange rate or the

conversion factor one u.s. dollar is

equal to 0.9 euros so how many euros is

fifteen thousand US dollars so let's

convert it first start with what you've

given and we're going to write that

number on the numerator of a fraction

now in the next fraction we're going to

put the exchange rate in it we want the

unit u.s. dollars to cancel leaving

behind the unit euros so there's two

parts of this equation one US dollar and

point nine euros one of them will go on

the top of this fraction and the other

will go on the bottom the question is

which one now notice that we have u.s.

dollars on the top in the first fraction

in order for that unit to cancel we need

to put that same unit on the bottom of

the second fraction so we're gonna put

this part on the bottom part of the

second fraction which means the right

side of the equation has to go on top so

you want to set it in such a way that

these units will cancel if you do that

you're gonna get the right answer so now

because these two numbers are on top of

the fraction we need to multiply so it's

going to be fifteen thousand times 0.9

and so the answer is 13,500 euros so

that's how you can convert from US

dollars into euros now keep in mind the

currency exchange rate that you see here

it

just everyday so tomorrow that rate

might be slightly different than what

you see so if you're going to convert US

dollars into euros you need to find out

what the exchange rate is for that

current day so just keep that in mind

now let's move on to the next problem

Kim has 30,000 Canadian dollars that she

wants to convert into u.s. dollars how

much will she receive in u.s. dollars

now we're given the exchange rate of one

u.s. dollar is 1.3 one Canadian dollars

so using this information go ahead and

get the answer so let's start with what

we're given that is 30,000 Canadian

dollars and we're going to write this

over one now in the next fraction we're

going to write the two parts of our

conversion factor or the exchange rate

so the one u.s. dollar where should that

go and where should we put the 1.3 one

Canadian dollars shall we put the 1.3

one Canadian dollars on the top of this

fraction or on the bottom what would you

say so looking at the fact that we have

the unique Canadian dollars on the top

part of the first fraction we want to

put that same unit on the bottom part of

the second fraction keep in mind we want

the unit Canadian dollars to cancel

because you want to convert it to US

dollars so we want the other part of

that equation to be on top so our final

answer will be in u.s. dollars now

notice that this number is on the bottom

so for this problem we need to divide as

opposed to multiply like we did in the

first problem so when you're dealing

with fractions if you have a number on

the top of a fraction and one on the

bottom you need to perform division and

the last problem we had a number on top

in this case we need to perform

multiplication when didn't have two

numbers on top of a fraction

so to get this answer it's gonna be

30,000 divided by one point three one

and so Kim will expect to receive twenty

two thousand nine hundred and seventy

six cents so that's how much US dollars

she expects to receive let me put the

unit USD so that's it for number two so

now you know how to convert between

Canadian dollars and US dollars number

three

Lauren wants to buy a laptop online

store XYZ sells it for 350 GBP or

British pounds and store ABC sells at

for three hundred eighty five euros

given a currency exchange rate of one

GBP per euro which is one point sixteen

which store offers the best deal so feel

free to pause the video if you want to

take a minute and work this problem out

so what we need to do is we need to make

sure that both values are in the same

unit because then we can make a fair

comparison to find out which store

offers the best deal so let's convert

GBP into euros but now how do we work

with the exchange rate when it's in this

format so let's write down what we know

one the British pound per one euro is

one point sixteen that's what this

expression is saying now what I'm gonna

do is multiply both sides of this

equation by one year on the left side

the unit euros will cancel so what I'm

going to get on the left side is one GBP

and on the right side I multiplied these

two so this is going to be one point one

six euros or you can write it this way

so one British pound is equal to one

point one six euros now let's go ahead

and perform the conversion so we're

starting with 350 GPP I mean GBP and

we're going to convert that into euros

so we have 350 British pounds and this

is our conversion rate so because we

have the unit GBP on top we're going to

put that same unit on the bottom so this

part is going to go on the bottom of the

second fraction

and we're gonna put 1.16 euros on top so

these units will cancel this tells us

that we need to multiply because we have

the two numbers on the top of the

fractions so it's 350 times one point

one six and so that's gonna be four

hundred and six euros so now let's

compare store ABC and store XYZ store

ABC is selling the laptop for 385 euros

store XYZ is selling it for 350 British

pounds which when you convert it is 406

euros so this price is lower now that

the units are the same therefore store

ABC offers the best deal for the laptop

so Lauren if she wants to save money

wants to buy the laptop at store ABC so

that's it for this problem number four

Sally has 45,000 Canadian dollars that

she wants to convert into Australian

dollars given the currency exchange rate

of one US dollar per Canadian dollar is

one point three one and

one Australian dollar per US dollar is

0.68 five how much money should she

expect to receive in Australian dollars

so this is a double conversion problem

right now let's write out the conversion

factors that we have so let's start with

the first one one US dollar per one

Canadian dollar is equal to one point

three one so let's multiply both sides

by one Canadian dollar so these two will

cancel and we're going to get this

conversion factor one u.s. dollar is

equal to one point three one Canadian

dollars now let's adjust this one so one

Australian dollar per one US dollar is

equal to point six eight five so

multiplying both sides by one US dollar

those units will cancel so we get that

one Australian dollar which is on the

left side of the equation is equal to

point six eight five US dollars so we

have two conversion factors now Sally

wants to convert her money from Canadian

dollars into Australian dollars so what

we need to do is convert from Canadian

dollars to US Dollars first use in this

conversion factor and then we can

convert from US dollars to Australian

dollars using the second conversion

factor now in this problem we're not

given a direct conversion from Canadian

dollars to Australian dollars now you

can look this information up online if

you go to google and type in

see ad to AUD it will give you the

direct conversion but for the sake of

learning we're going to do the double

conversion in this problem so let's

start with 45,000 Canadian dollars and

as always we're going to write this over

one now in the second fraction we're

going to use this information so since

we see Canadian dollars on the top left

we're going to put that same unit on the

bottom right so that's going to be this

part of the first conversion factor and

then the other part of the exchange rate

is going to go on top so we can see that

the unit Canadian dollars cancels now

for the next fraction we're going to use

the exchange rate that we see here so

notice that we have u.s. dollars on top

we're going to put that on the bottom so

this part goes on the bottom of the

third fraction so that's going to be 0.6

eight five US dollars and that

corresponds to one Australian dollar so

the unit US dollars will cancel and we

can also cancel this dollar sign so

notice that these two numbers are on the

bottom of the second and third fraction

which means division so we're gonna

start with forty five thousand and then

we're going to divide by one point three

one since it's on the bottom that gives

us thirty four thousand three hundred

fifty one point one four five we're

gonna take that result and divide it

again by that number so divided by 0.6

eight five and you should get fifty

thousand one hundred forty seven dollars

and if you round it sixty six cents so

that's in Australian dollars

so that's the answer for number four so

now you know how to perform a double

conversion if needed now let's move on

to number five

Luke converts 70,000 u.s. dollars into

euros at an exchange rate of 1 euro per

US dollar which is one point one six

when the currency rate rises to one

point eight nine he changes his money

back into US dollars how much money did

Luke make from his currency trades so

first let's convert US dollars into

euros actually before we do that let's

adjust the information that we have here

so 1 euro per 1 US dollar is a dollar 16

so multiplying both sides by 1 USD those

units will cancel we have this

conversion so 1 euro is one dollar and

16 cents so the other conversion that we

have tells us that if we follow the same

process 1 euro is a dollar 89 so that's

the second exchange rate so Luke he's

going to convert 70 thousand US dollars

into euros using this first exchange

rate so let's do that so we have $70,000

over 1 and it's a dollar 16 per 1 euro

so as we could see the unit dollars

cancel and because this number is on the

bottom we're going to divide so let me

do that real quick 70 thousand divided

by 1.1 6 and that's gonna be

sixty thousand three hundred forty-four

euros and 0.83 if we round it so now

he's gonna convert that money back into

USD when the currency rate rises to one

point eight nine so now we're going to

use this conversion factor so let's

start with what he has in euros at this

point so we're gonna put that over one

and then we're going to use the second

exchange rate in this fraction so we

have the symbol euros on top we need to

put that same symbol on the bottom let

me write that better so we have one euro

corresponds to a dollar and eighty nine

so the unit euros will cancel and we're

gonna get the unit in dollars so this

time the two numbers are on top of the

two fractions so we need to multiply so

it's going to be sixty thousand three

hundred forty four point eight three

times one point eight nine and so this

is going to be a hundred fourteen

thousand fifty one dollars and 73 cents

so this is how much money he started

with in u.s. dollars and as a result of

his two currency trades he now has this

much money in euros dollars so his

current account value is a hundred

fourteen thousand and fifty one dollars

and 73 cents

he started with seventy thousand so the

amount of money that he made is the

difference between the two

which is 44,000 fifty one dollars and 73

cents so that's how much money Luke made

from his currency trades so that's it

for this video now you know how to

convert from one currency into another

and thanks again for watching