On a trip, you had to change your money from dollars to British pounds. You got 560 560 pounds for 800 800 dollars. How many pounds will you get for 300 300 dollars?
The correct answer and explanation is:
First, let’s find the exchange rate from dollars to British pounds based on the information given.
You got 560 pounds for 800 dollars.
To find the exchange rate (pounds per dollar), divide the amount in pounds by the amount in dollars:
Exchange rate = 560 pounds ÷ 800 dollars = 0.7 pounds per dollar
This means for every 1 dollar, you get 0.7 pounds.
Now, to find out how many pounds you will get for 300 dollars, multiply the dollars by the exchange rate:
Pounds = 300 dollars × 0.7 pounds/dollar = 210 pounds
So, for 300 dollars, you will get 210 British pounds.
Explanation:
Currency exchange involves converting money from one currency to another using an exchange rate. The exchange rate is a ratio that shows how much of one currency can be exchanged for a unit of another currency. In this problem, the exchange rate from dollars to British pounds is found by dividing the amount of pounds received by the amount of dollars given. This gives a consistent rate indicating how many pounds one dollar can buy.
Once the exchange rate is known, it can be used to calculate how much currency you will receive for any amount of dollars. Multiplying the amount of dollars by the exchange rate converts dollars into pounds. This method assumes the exchange rate remains constant for the second transaction.
The process is straightforward: first find the unit rate (pounds per dollar) from the initial transaction, then apply this rate to the new dollar amount. This avoids needing to directly compare different amounts and simplifies conversion for any dollar value.
In real situations, exchange rates may vary or include fees, but this calculation works well for straightforward problems without additional costs. Understanding how to find and apply exchange rates helps in budgeting for travel, business, or personal finance when dealing with different currencies.