Foreign money and exchange rates - WJECCommission - Intermediate and Higher tier

When going abroad you need to change money to the currency of the country you are visiting. It is important to know the exchange rate and amount of commission charged to get the best possible deal.

Part ofMaths Numeracy (WJEC)Number

Commission - Intermediate and Higher tier

Some companies charge commission for exchanging your currency. This may be:

  • a flat rate
  • built into the exchange rate
  • a percentage of the amount exchanged

The amount you’re exchanging may influence which company you choose.

Example

Question

Anwen is going on holiday and wants to exchange £500 into Australian dollars.

Bank A will give her an exchange rate of £1 = 2.08 AUD and charge a flat fee of £5 per transaction.

Bank B are offering an exchange rate of £1 = 2.02 AUD with no additional charges.

Which bank should Anwen use to get the most Australian dollars for £500?

Question

Glynn needs €240 for his holiday to Italy.

SmartSavers charge a handling fee of £4.

CurrencyConverters add 1.5% onto the amount of pounds you are changing.

Both companies are offering an exchange rate of £1 = €1.25.

Calculate how much €240 will cost Glynn at both companies and suggest which company he should use and why.

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Converting different currencies - Intermediate

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