Currency Exchange Estimation

Lesson 3: Currency - Currency Exchange Estimation

   Constructing Knowledge

When travelling in other countries, you often do not have the time to fully calculate prices in other currencies. Often, in order to make a decision on whether to buy something or not, a quick mental estimation can be made.

Exchange Rates for $1.00 Canadian, and Estimation

Foreign Currency	Community Bank	Estimation to Canadian Dollars
United States Dollar	$0.91	Full amount plus 10%
European Euro	€0.66	Full amount plus half the original price
Chinese Yuan	¥5.27	Divide the price by 5
Mexican Peso	$11.47	Divide the price by 10, then take off another 10%

Using these types of strategies will allow you to do quick mental math in the absence of a calculator.

   Multimedia

A video describing the estimation of currency exchange is provided.

EXAMPLE

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The following table lists the prices of a video game in four different currencies. Estimate the equivalent price in Canadian funds.

Solution

Price	Estimated Price in $ CAD
$59.99 USD	move the decimal one place to the left to estimate 10%. 10% is 5.99 or about 6 Add the 6 and the 60 about $66 CAD.
€45.95	half of 46 is 23 add the 46 and 23 about $69 CAD
¥300	divide the original price by 5 about $60 CAD
$780 MXN	divide the original price by 10, which is 78. move the decimal one place to the left to estimate 10% 10% of 78 is about 8 subtract 8 from 78 about $70 CAD.

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