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An exchange rate is the value of one country's currency in relation to another country's currency. It tells you how much one currency is worth when converted to another.

Economics

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Answers

3 parts
a

£2317.88\text{}\pounds 2317.88\text{}

c

\text{}\ 2208.33\text{}$

b

R3714.60\text{}\text{R}3714.60\text{}

Step-by-step solution

6 steps
  1. An exchange rate is the value of one country's currency in relation to another country's currency. It tells you how much one currency is worth when converted to another.

  2. A currency is a system of money (notes and coins) in general use in a particular country.

  3. A strong currency means that the currency has high values.

  4. A weak currency means that the currency has low values.

  5. Calculate the following exchange rates:

Part a· 2 steps

  1. Identify the given exchange rate and the amount to convert.

    Given: £1=R15.10\pounds 1 = \text{R}15.10
    Amount in Rands: R35 000\text{R}35\,000

  2. Divide the amount in Rands by the exchange rate to find the equivalent amount in Pounds.

    Pounds=R35 000R15.10/£\text{Pounds} = \frac{\text{R}35\,000}{\text{R}15.10/\pounds} Pounds=2317.880794695...\text{Pounds} = 2317.880794695... Pounds≈2317.88\text{Pounds} \approx 2317.88

    The number of pounds in R35 000\text{R}35\,000 is £2317.88\boxed{\text{}\pounds 2317.88\text{}}

Part c

\text{}\ 2208.33\text{}$

  1. Identify the given exchange rate and the amount to convert.

    Given: \ 1 = R12.00AmountinRands: Amount in Rands:\text{R}26,500$

  2. Divide the amount in Rands by the exchange rate to find the equivalent amount in Dollars.

    Dollars=R26 500R12.00/$\text{Dollars} = \frac{\text{R}26\,500}{\text{R}12.00/\$}

    Dollars=2208.33333...\text{Dollars} = 2208.33333... Dollars≈2208.33\text{Dollars} \approx 2208.33

    The number of dollars in R26 500\text{R}26\,500 is \boxed{\text{}\ 2208.33}$

Part b

R3714.60\text{}\text{R}3714.60\text{}

  1. Identify the cost of the camera in Pounds and the exchange rate.

    Camera cost: £234\pounds 234
    Exchange rate: £1=R15.90\pounds 1 = \text{R}15.90

  2. Multiply the cost in Pounds by the exchange rate to find the equivalent cost in Rands.

    Cost in Rands=£234×R15.90/£\text{Cost in Rands} = \pounds 234 \times \text{R}15.90/\pounds Cost in Rands=R3714.60\text{Cost in Rands} = \text{R}3714.60

    The camera would cost R3714.60\boxed{\text{}\text{R}3714.60\text{}} in Rands.

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