Module 8

Module 8: Daily Living

 

Bringing Ideas Together

 

In Explore you compared prices in foreign currencies to prices in Canadian dollars. The Bank of Canada currency converter is an efficient tool for making these comparisons. However, you may not always have access to an online currency converter. Nominal exchange rates are printed in the business or financial sections of most large, daily newspapers.

 

The following table was compiled from rates available on February 3, 2010. In this table foreign currencies are compared to the Canadian dollar. Most tables are much more extensive and list many more currencies!

 

	Currency Unit	Units per C$1.00	Number of CAD per Unit
ARS	Argentina Pesos	3.611 723 702 8	0.276 876 107 4
AUD	Australia Dollars	1.068 204 878 2	0.936 150 003 0
BMD	Bermuda Dollars	0.941 902 107 9	1.061 681 454 6
BRL	Brazil Reals	1.748 147 656 1	0.572 034 059 3
CAD	Canada Dollars	1.000 000 000 0	1.000 000 000 0
CLP	Chile Pesos	506.978 809 574 3	0.001 972 469 0
CNY	China Yuan Renminbi	6.431 307 657 4	0.155 489 373 7
COP	Colombia Pesos	1846.068 238 870 6	0.000 541 691 8
CRC	Costa Rica Colones	520.400 914 611 7	0.001 921 595 4
DKK	Denmark Kroner	5.047 264 950 1	0.198 127 106 4
DOP	Dominican Republic Pesos	34.049 761 200 4	0.029 368 781 6
EGP	Egypt Pounds	5.139 017 760 5	0.194 589 714 7
EUR	Euro	0.677 984 660 5	1.474 959 624 2
HKD	Hong Kong Dollars	7.315 705 823 9	0.136 692 210 4
ISK	Iceland Kronur	119.859 046 614 0	0.008 343 133 3
INR	India Rupees	43.431 106 769 9	0.023 024 971 6
ILS	Israel New Shekels	3.491 919 786 3	0.286 375 421 3
JMD	Jamaica Dollars	84.042 384 042 5	0.011 898 758 1
JPY	Japan Yen	85.767 463 970 6	0.011 659 433 0
JOD	Jordan Dinars	0.667 808 586 4	1.497 435 074 0
KES	Kenya Shillings	71.537 462 220 1	0.013 978 689 9
LBP	Lebanon Pounds	1415.207 917 111 6	0.000 706 610 0
MYR	Malaysia Ringgits	3.218 479 502 7	0.310 705 722 7
MXN	Mexico Pesos	12.218 467 481 6	0.081 843 324 6
NZD	New Zealand Dollars	1.331 680 148 6	0.750 931 070 8
NOK	Norway Kroner	5.534 052 405 6	0.180 699 409 2
PKR	Pakistan Rupees	80.009 364 073 7	0.012 498 537 0
PEN	Peru Nuevos Soles	2.686 915 693 1	0.372 173 940 0
PHP	Philippines Pesos	43.258 179 492 0	0.023 117 015 4
PLN	Poland Zlotych	2.720 219 260 4	0.367 617 425 0
RUB	Russia Roubles	28.142 067 014 8	0.035 533 992 6
SAR	Saudi Arabia Riyals	3.532 198 542 8	0.283 109 793 5
ZAR	South Africa Rand	7.078 298 970 2	0.141 276 880 8
SEK	Sweden Kronor	6.859 767 248 5	0.145 777 540 8
CHF	Switzerland Francs	0.997 856 390 0	1.002 148 215 0
THB	Thailand Baht	31.162 830 375 4	0.032 089 511 4
TRY	Turkey Lira	1.407 776 526 2	0.710 340 015 9
GBP	United Kingdom Pounds	0.592 765 854 6	1.687 006 753 5
USD	United States Dollars	0.941 902 107 9	1.061 681 454 6
VEF	Venezuela Bolivares Fuertes	4.050 179 063 9	0.246 902 663 9

 

Take a look at Example 1 to see how the table is used.

 

Example 1

 

As part of a school tour, Eddy and several of his classmates are travelling in France. They have just stopped to eat in a small cafe. The luncheon special costs €12.00.

1. How might Eddy and his friends use their knowledge about the relative value of the Canadian dollar and the euro to estimate the cost of the special in Canadian dollars?
   
   
2. Use the table to determine the cost of the luncheon special in Canadian dollars. Round to the nearest cent.

Solution

 

€ → C$

 

		Units per C$1.00	Number of CAD per Unit
EUR	euro	0.677 984 660 5	1.474 959 624 2

 

From the table C$1.00 = €0.677 984 660 5, and €1.00 = C$1.474 959 624 2.

1. Eddy and his friends know that €1.00 is approximately C$1.50. “I know,” says Eddy. “$1.50 is 1 dollars. So take of 12. That’s 6. Add 6 to 12. That will be 1 times. That’s 18. The special will cost about C$18.00.”
   
   Eddy’s friend takes out a pen and multiplies 12 by 1.5. 12 × 1.5 = 18!
   
   
2. Since you want to convert euros to dollars, use €1.00 = C$1.474 959 624 2.
   
   €1.00 = C$1.474 959 624 2
   
   €
   
   The special costs C$17.70.

Example 2

 

Carl has a cousin in England who is a plumbing and heating installation and repair technician. Last year, Carl’s cousin earned £32 000. Carl has a similar job in Canada and earned $54 000. Compare their earnings.

 

Solution

 

Currency Unit	Per C$1.00	Number of CAD per Unit
GBP (United Kingdom Pounds)	0.592 765 854 6	1.687 006 753 5

£→C$

 

Method 1	Method 2

 

Carl earned C$54 000.00 - C$53 984.22 = C$15.78 more than his cousin last year.

 

View the animated “Example 2 Solution: Currency Conversion.”

 

Try the following questions based on the currency-exchange table.

 

Self-Check

 

SC 3. Janice is holidaying in Mexico. She sees a silver bracelet in a gift shop for Mex$800.00.

1. How might Janice estimate the cost in Canadian dollars?
   
   
2. Use the table to determine the cost in Canadian dollars to the nearest cent.

SC 4. On an online shopping website, a composite goalie stick is advertised for US$65.00. Excluding transaction fees, taxes, and shipping, what is the price in Canadian dollars?

 

SC 5. Hera has just opened a US-dollar investment account. She wishes to invest C$12 450.00. What is that sum in US dollars?

 

SC 6. Why are there so many decimal places given in currency-exchange tables?

 

Compare your answers.

Mathematics 10-3 Learn EveryWare © 2010 Alberta Education