GCSE Maths Practice: currency-conversion

Higher GCSE Currency Conversion with Half-Pound Values

At Higher GCSE level, currency conversion questions often involve non-round amounts such as halves or quarters of a pound. These values are chosen deliberately to test careful decimal multiplication, correct rounding, and attention to detail. Although the method is the same as for simpler questions, accuracy becomes much more important.

Understanding the Exchange Rate

An exchange rate compares the value of two currencies. For example, if £1 = €1.22, this means that one pound is worth one euro and twenty-two cents. Because the exchange rate is greater than 1, converting from pounds to euros will always increase the numerical value.

Before calculating, it is helpful to estimate the answer. £187.50 × 1.22 is close to £187.50 × 1.2, which gives €225. This tells you that the final answer should be slightly higher than €225.

Correct Method for Higher Tier Questions

Use a structured approach to avoid mistakes:

• 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 during intermediate steps is one of the most common causes of lost marks at Higher tier.

Worked Example (Different Numbers)

Suppose the exchange rate is £1 = €1.24.

Convert £162.50 to euros.

Step 1: Estimate first. £162.50 × 1.25 ≈ €203, so the exact answer should be slightly lower.

Step 2: Multiply: 162.50 × 1.24 = 201.5

Step 3: Write the answer as money → €201.50

Another Example

If £1 = €1.18 and someone exchanges £247.50:

247.50 × 1.18 = 292.05 → €292.05

Common Higher-Tier Errors

• Incorrect decimal placement: Always count decimal places carefully.
• Rounding too early: This reduces accuracy.
• Ignoring estimation: Estimation helps spot major errors.
• Assuming half-pounds give neat answers: They often do not.

Real-Life Applications

Currency conversion with non-round values is common in real life, including:

• Paying for accommodation or transport abroad
• Converting online purchases priced with decimals
• Managing travel budgets
• Understanding bank and exchange bureau calculations

Frequently Asked Questions

Why do exam questions use amounts like £187.50?
They test accurate decimal multiplication and rounding.

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

Is rounding always required?
Yes, unless the final value is already exact to two decimal places.

Study Tip

For Higher GCSE currency questions, estimate first, calculate carefully, and round only once at the end. This habit greatly reduces errors.