GCSE Maths Practice: currency-conversion

Question 4 of 10

Use the given exchange rate to convert the amount from pounds into euros, taking care with decimal values.

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\( \begin{array}{l} \text{£1 = €1.22} \\ \text{Convert £312.50 to euros.} \end{array} \)

Choose one option:

Estimate first, then calculate accurately. Round only once at the end.

Higher GCSE Currency Conversion with Non-Round Amounts

At Higher GCSE level, currency conversion questions are designed to test precision, accuracy, and careful handling of decimals. Unlike Foundation questions, the amounts and exchange rates are often less convenient, meaning estimation and correct rounding become especially important.

Understanding the Exchange Rate

An exchange rate shows how much one currency is worth in another. For example, if £1 = €1.22, this means that every pound is worth one euro and twenty-two cents. Because the exchange rate is greater than 1, converting from pounds to euros will always result in a larger numerical value.

Before calculating, it is helpful to estimate the answer. £312.50 × 1.22 is close to £312.50 × 1.2, which gives just over €375. This allows you to quickly rule out options that are clearly too small or too large.

Correct Method for Higher Tier Questions

Use a clear, structured approach:

  • Write down the multiplication clearly.
  • Carry out the full decimal calculation.
  • Keep all decimal places during working.
  • Round only the final answer to two decimal places.

Rounding too early is one of the most common causes of lost marks at Higher tier.

Worked Example (Different Numbers)

Suppose the exchange rate is £1 = €1.19.

Convert £287.50 to euros.

Step 1: Estimate first. £287.50 × 1.2 ≈ €345, so the answer should be slightly lower.

Step 2: Multiply: 287.50 × 1.19 = 342.125

Step 3: Round to two decimal places → €342.13

Another Example

If £1 = €1.27 and someone exchanges £164.80:

164.80 × 1.27 = 209.296 → €209.30

Common Higher-Tier Errors

  • Incorrect decimal placement: Always check the number of decimal places.
  • Rounding during calculation: This reduces accuracy.
  • Ignoring estimation: Estimation helps catch major errors.
  • Choosing a neat-looking option: Correct answers are not always round numbers.

Real-Life Relevance

Accurate currency conversion is important in many real-world situations, including:

  • Booking flights and accommodation abroad
  • Paying for overseas purchases
  • Comparing international prices or salaries
  • Understanding bank and exchange bureau rates

Frequently Asked Questions

Why do some answers include .25 or .75?
Because half-pound amounts often produce quarter or three-quarter decimals when multiplied.

Should I always estimate first?
Yes. Estimation helps you quickly check whether your answer is reasonable.

Are non-round amounts common in Higher GCSE?
Yes. They are used to test accuracy and careful calculation.

Study Tip

When converting non-round amounts, write each step clearly and keep full precision until the final rounding. This greatly reduces mistakes.

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